U.S. Proposes Over $11 Billion in Tariffs on European Union Goods

U.S. Proposes Over $11 Billion in Tariffs on European Union Goods

The U.S. government has proposed more than $11 billion in new tariff charges on goods originating from the European Union (EU). The U.S. administration says the tariffs are in retaliation for subsidies the EU granted aerospace giant Airbus.

For more than 14 years, the EU and U.S. have traded claims of improper subsidies granted to Airbus and rival Boeing. In a report circulated in 2018, the World Trade Organization (WTO) found that the Airbus subsidies granted by the EU were inconsistent with the trade guidelines outlined in the General Agreement in Tariffs and Trades.

The U.S. estimates the subsidies to be worth $11.2 billion in trade, although the EU has challenged that estimate.

A preliminary list of products in scope of the tariffs was released for public consultation. Goods include:

  • Civilian aircraft products.
  • Cheese.
  • Jams/preserves.
  • Fresh fruit.
  • Seafood.
  • Wine.
  • Olive oil.
  • Motorcycles.
  • Kitchenware.
  • Ceramic tiles.
  • Bed linens.
  • Cashmere sweaters, pullovers or similar garments.
  • Handbags.
  • Essential oils.

President Donald Trump has also previously threatened to impose tariffs on automobiles from the EU unless the two trading blocs reach a deal. The final list of products is expected to be announced in the summer of 2019.

The new tariffs would be imposed in addition to existing levies on EU goods.

Recent tariffs imposed by the U.S. government have been met in kind from the countries targeted. Last year, the U.S. imposed levies on steel and aluminium imported from allies such as the EU, Canada and Mexico. Those parties responded with dollar-for-dollar retaliatory tariffs, targeting products in politically sensitive areas for the U.S. administration, such as bourbon from Tennessee and orange juice from Florida.

The U.S. is also embroiled in a trade war with China, with each side imposing tariffs on goods.

With the changing nature of trade compliance, companies’ product data requirements are subject to change. Those leveraging a strong supply chain data management solution will be better positioned to maintain compliance in that event that their goods are subject to tariffs. Download our eBook, Managing Data for Trade Compliance, to learn how Assent can help you efficiently meet your trade compliance obligations.

To learn how our Product Compliance Suite can streamline your supply chain data collection and reporting processes, email info@assentcompliance.com.