Brussels: The United States imposed tariffs on a record $7.5-billion worth of European Union goods Friday, earning a swift threat of retaliation by the EU. The tariffs, which took effect just after midnight in Washington, came after talks between European officials and US trade representatives failed to win a last-minute reprieve.
Airbus, French wine and Scottish whiskies are among the high-profile targets with Europe ready to hit back against its own list of iconic or politically sensitive US products next year. The WTO-endorsed transatlantic onslaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilising the global economy further.
In the line of fire are civilian aircraft from Britain, France, Germany and Spain — the countries that formed Airbus — which will now cost 10 percent more when imported to the US.
But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months. Wine from France, Spain and Germany will now face 25 percent tariffs.
“We regret the choice of the US to move ahead with tariffs,” European Trade Commissioner Cecilia Malmstrom said in a statement after attempts to negotiate a truce went nowhere.
“This step leaves us no alternative but to follow through in due course with our own tariffs in the Boeing case, where the US has been found in breach of WTO rules,” she added. Speaking in Washington hours before the tariffs came into effect, France’s Economy Minister Bruno Le Maire warned the move would have serious repercussions. “Europe is ready to retaliate, in the framework of course of the WTO,” he told reporters shortly after meeting with US Treasury Secretary Steven Mnuchin.
