Trade War With Cheese: Trump's New EU Tariffs

Trade War With Cheese: Trump's New EU Tariffs

Trade War With Cheese: Trump's New EU Tariffs

The move by the US trade representative follows separate WTO findings that both Boeing and Airbus ― which compete in the commercial jetliner market ― are subsidized.

Daniel Rosario, a spokesperson for the European Commission, said the European governing body remains open to discussions, so long as they're not based on pre-conditions.

The Trump administration has threatened to slap tariffs on $11 billion worth of imports from the European Union, in retaliation for subsidies that the European Union reportedly gave to Airbus.

Airbus said it saw no legal basis for the US move and warned of deepening transatlantic trade tensions. "The amount is largely exaggerated and will, in any case, be defined by the WTO and not by the United States", according to Ohler.

"This is just a sign that President Trump is trying to put pressure on Europe", said Aline Schuiling, an economist at ABN Amro.

The US trade representative, Robert Lighthizer, said that the case had been in litigation at the World Trade Organisation for 14 years and that "the time has come for action". Today on the show, a look at what's behind this latest round of proposed tariffs - and what this means for the economies of Europe and the U.S.

Trump's public attack on the European Union came even as his administration has yet to hammer out trade deals with China and neighbors Mexico and Canada.

The case, which has been grinding its way through the World Trade Organization (WTO) for nearly 15 years, is approaching the final stages of arbitration.

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"It will soon stop!" he wrote.

The dollar fell and the rally in global equities lost steam on Tuesday as a United States threat to slap tariffs on hundreds of European goods and a downgrade by the International Monetary Fund in its global economic growth forecasts dimmed the appetite for risk.

"The Commission is starting preparations so that the European Union can promptly take action based on the arbitrator's decision on retaliation rights in this (Boeing) case", a Commission spokesman said, according to Reuters.

The European Commission said on Monday (18 February) that the EU will respond in a "swift and adequate manner" to the possibility that the USA may impose tariffs on European cars, following the submission of a U.S. report on whether auto imports represent a national security threat.

Airbus suppliers such as Safran, Leonardo and Dassault lost between 0.7 percent and 1.2 percent. "The figure quoted by USTR is based on USA internal estimates that have not been awarded by the WTO". The United States is a major market for Volkswagen, Mercedes maker Daimler and BMW.

"Airbus has taken the necessary measures to comply with the relatively minor elements that remained following WTO report" from May 2018, he said.

The U.S. and EU have since July been in talks to scale back the tariffs, with Trump holding out the bigger threat of slapping tariffs on European cars - a huge industry in the region - should the negotiations not yield a result.

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