WTO Permits U.S. to Impose Tariffs on $8 Billion of European Goods

On Wednesday, September 25th, the World Trade Organization (WTO) authorized the U.S. to impose additional tariffs on $8 billion worth of European goods in response to the European Union’s (EU) subsidization of Airbus – Europe’s leading manufacturer of airplanes and aviation equipment.

Though the U.S. Trade Representative (USTR) has yet to announce a specific percentage for the additional tariffs, they could go into effect as early as October and are likely to cover everything from planes and parts to luxury apparel and alcoholic beverages.

The EU has promised to react swiftly with retaliatory tariffs on U.S. exports, an undertaking that would be heavily aided by the pending WTO case, set for an early 2020 decision, that the EU is pursuing against the U.S in regard to the subsidization of Boeing Co. A WTO decision in their favor would allow the EU to impose up to $12 billion in tariffs on U.S. products ranging from ketchup to high-end electronics.

Shapiro will continue to monitor the situation and provide updates as they become available. In the meantime, please reach out to our compliance experts with any questions.