The measures result from a decision of the World Trade Organization (the "WTO") earlier this month authorizing the US to counter the EU's non – compliance with its WTO obligations and impose import tariffs on $7.5 billion worth of European goods. The dispute, which lasted for 14 years, concerns illegal government subsidies to Airbus. In parallel to the EU's unfair aid to Airbus, the WTO identified illegal subsidies from the US to Boeing.
The US measures are designed in an unusual way and consist of 15 different categories, applying unevenly to different groups of countries and goods. The countries most affected by the measures seem to be France, Germany, Spain and the UK, which are the countries where Airbus' main production facilities are situated.
Although the Notice of 9 October 2019, mentions that the United States Trade Representative remains open to discussing matters related to this investigation with the EU and EU member States, the possible remedies seem rather limited and entirely discretionary. The EU confirmed today in a press release that it is ready to start negotiations with Washington on a settlement but that it is left with no alternative than to counter-retaliate and follow through in due course with its own tariffs in the Boeing case. The dispute may escalate to a new dimension of the EU-US trade war.
The below provides you with a broad overview of the affected products (for a detailed overview please see here (9 October 2019 Notice) and here (18 October 2019 technical adjustments Notice). Please do not hesitate to contact the Brussels trade team should you have any further questions.
| Additional tariff | Products | Affected countries |
| 10% | New airplanes and other new aircraft | France, Germany, Spain or the UK |
| 25% |
|
All 28 Member States and in particular France, Italy, Spain or the UK |
| 25% |
|
Germany, Spain, or the UK |
| 25% |
|
France, Germany, Spain or the UK |
| 25% |
|
Germany |
| 25% |
|
Germany or the UK |
| 25% |
|
Germany, Ireland, Italy, Spain, or the UK |
| 25% |
|
the UK |
|
Additional tariff |
Products |
Affected Member States |
|
10 % |
New airplanes and other new aircraft |
France, Germany, Spain or the UK |
|
25 % |
|
All 28 Member States and in particular France, Italy, Spain or the UK |
|
25 % |
|
Germany, Spain, or the UK |
|
25 % |
|
France, Germany, Spain or the UK |
|
25 % |
|
Germany |
|
25 % |
|
Germany or the UK |
|
25 % |
|
Germany, Ireland, Italy, Spain, or the UK |
|
25 % |
|
The UK |
