American tariffs on EU exports come into effect
Cheese, whisky and aircraft producers hit hardest with $7.5bn worth of tariffs
The United States has introduced $7.5bn (£6bn) worth of tariffs on goods produced in the European Union.
The Trump administration announced the tariffs three weeks ago following the World Trade Organisation’s (WTO) ruling that the US could impose countermeasure tariffs against countries that build parts for Airbus aeroplanes.
The WTO adjudicated on a complaint filed by Airbus’ American competitor, Boeing (BA), 15 years ago that the European firm received illegal state aid and subsidies in the form of cheap loans. It found that the US government also gave Boeing a degree of illegal state aid but could indeed impose retaliatory measures.
The US trade representative’s office confirmed that aircraft produced in the EU will be hit with 10 per cent tariffs, while other products, such as cheese and whisky, will be struck with 25 per cent tariffs.
President Donald Trump stated this week his desire to win a trade war with Europe and to redress the current trade imbalance between the two firms, stating: “I can remedy the situation very easily.”
Airbus stocks are still up from the start of 2019, but stand at around €119.82, down from July’s peak of €132.92.
Boeing stock is similarly up from the start of the year, standing at around $365.24, down from its March peak of $440.62.