US Holds Off A Hike In Tariffs in EU Airbus

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US Holds Off A Hike In Tariffs in EU Airbus
Ienac from the German Wikipedia, [1] / Public domain

Recently, the United States said that it would hold off a tariff hike on $7.5 billion worth of UK and European based goods. The tariff has been imposed as a punishment for plane-maker Airbus subsidies. 

The decision has been seen as a medium to put an end to the 16-years long trade battle over state aid for American rival Boeing and Airbus. 

On Wednesday, Robert Lighthizer, Top Trade Official in America, said- “The EU and member states have not taken the actions necessary to come into compliance with WTO decisions,” Source: BBC. 

He further continued and said- “The United States, however, is committed to obtaining a long-term resolution to this dispute. Source: BBC. 

The European Union has welcomed this decision of the United States as it will not increase the number of goods subject to tariffs. 

An EU spokesperson said- “The Commission acknowledges the decision of the US not to exacerbate the ongoing aircraft dispute by increasing tariffs on European products,” Source: BBC. 

Last month, Airbus said that it would think of altering some lucrative deals which may prove responsible for the dispute. It said that it might include increasing the interest rates on loans with Spain and France while eradicating “any justification” for the border texas of the United States. 

On Wednesday, Clay McConnell, Airbus Spokesman gave a statement and said that the company “profoundly regrets that, despite Europe’s recent actions to achieve full compliance, USTR [US Trade Representative] has decided to maintain tariffs on Airbus aircraft – especially at a time when aviation and other sectors are going through an unprecedented crisis.” Source: BBC. 

Robert Lighthizer, Former Chief of Staff to US Trade Representative, told the BBC said- “The reality is that this can all be solved if Airbus took some action to provide restitution”. Source: BBC. 

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Source: https://www.bbc.com/news/business-53756201