Tariffs would impact Airbus Mobile

The United States and the European Union are preparing to impose tariffs on each other’s products in connection with the 14-year fight over government aid given to Boeing and rival Airbus. The United States requested the authority to impose retaliatory tariffs of $11.2 billion per year, and the two sides are awaiting a decision on the level of tariffs that the United States will be authorized to levy on the European Union. The proposed tariffs would include airplane sections and parts shipped into Mobile, Ala., to build A320 series jetliners. Airbus and Boeing compete for industry dominance. Both sides have been judged by the WTO to have paid billions in subsidies to gain advantage, and have been asked to stop or face potential sanctions. (Sources: multiple, including New York Times, al.com, WKRG-TV, 04/09/19, FOX10, 04/10/19) In Brussels today, European Union countries gave initial clearance to start formal trade talks with the United States. The European Commission said it had started to draw up plans to retaliate over subsidies for U.S. planemaker Boeing. Both sides have won partial victories at the World Trade Organization in claiming the other’s planemaker received unlawful subsidies but disagree on the amount involved and whether each has complied with earlier WTO rulings. (Source: Reuters, 04/11/19)