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The US imposes Airbus countermeasures in the form of additional tariffs applicable as from today

18 October 2019
Starting from today, 18 October 2019, the US raises an additional 10 percent tariff on European aircraft imports and an additional 25 percent tariff on agricultural and some industrial goods. We provide you herewith a short overview of some of the goods that are affected. 

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%  
  • yoghurt, in dry and not in fry form;
  • butter and other specific types of butter substitutes;    
  • certain types of fresh cheddar, Italian-type and Swiss emmentaler cheeses;
  • certain types of blue-veined cheese (except roquefort);
  • processed cheeses made from sheep's milk;
  • certain types of reggiano, parmesan, provolone, and provoletti cheese;
  • gruyere-process cheese;
  • oranges, fresh or dried;
  • lemons;
  • mandarins and other similar citrus;
  • certain types of mussels and clams;
  • various pork products such as sausages, hams and similar products of pork; and
  • juice of any single vegetable, other than tomato.
  All 28 Member States and in particular France, Italy, Spain or the UK  
 25%  
  • frozen meat of swine, other than retail cut;
  • edam and gouda cheese; and
  • virgin olive oil and certain types of olives.
  Germany, Spain, or the UK
 25%  
  • certain green olives; and
  • wine other than tokay not over 14% alcohol and in containers not exceeding 2 liters.
  France, Germany, Spain or the UK
 25%  
  • coffee, roasted,not decaffeinated and decaffeinated;
  • instant coffee, not flavoured;
  • hewing tools such as axes and bill hooks (other than machetes) and base metal parts thereof;
  • pliers (including cutting pliers but not slip joint pliers), pincers and similar tools;
  • metal cutting shears and similar tools, and base metal parts thereof;
  • various other tools and machinery such as pipe cutters, screwdrivers etc.;
  • industrial or laboratory microwave ovens for making hot drinks or for cooking or heating food; and
  • objective lenses and parts & access. thereof, for cameras, projectors, or photographic enlargers or reducers, except projection.
  Germany
25%   
  • sweet biscuits;
  • waffles and wafers;
  • printed books, brochures, leaflets and similar printed matter in single sheets, whether or not folded;
  • certain types of lithographs; and
  • certain types of self-propelled backhoes, shovels, clamshells and draglines and other type of machinery.
  Germany or the UK
 25%  
  • liqueurs and cordials
  Germany, Ireland, Italy, Spain, or the UK
 25%  
  • single-malt Irish and Scotch Whiskies;
  • various clothing such as sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted

    or crocheted, of wool, of kashmir goats, wholly of cashmere and of cotton; and

  • blankets and bed linen.
  the UK

Additional tariff

Products

Affected Member States

10 %

New airplanes and other new aircraft

France, Germany, Spain or the UK

25 %
  • yoghurt, in dry and not in fry form;
  • butter and other specific types of butter substitutes;    
  • certain types of fresh cheddar, Italian-type and Swiss emmentaler cheeses;
  • certain types of blue-veined cheese (except roquefort);
  • processed cheeses made from sheep's milk;
  • certain types of reggiano, parmesan, provolone, and provoletti cheese;
  • gruyere-process cheese;
  • oranges, fresh or dried;
  • lemons;
  • mandarins and other similar citrus;
  • certain types of mussels and clams;
  • various pork products such as sausages, hams and similar products of pork; and
  • juice of any single vegetable, other than tomato.

All 28 Member States and in particular France, Italy, Spain or the UK  

25 %
  • frozen meat of swine, other than retail cut;
  • edam and gouda cheese; and
  • virgin olive oil and certain types of olives.

Germany, Spain, or the UK

25 %

  • certain green olives; and
  • wine other than tokay not over 14% alcohol and in containers not exceeding 2 liters.

France, Germany, Spain or the UK

25 %
  • coffee, roasted,not decaffeinated and decaffeinated;
  • instant coffee, not flavoured;
  • hewing tools such as axes and bill hooks (other than machetes) and base metal parts thereof;
  • pliers (including cutting pliers but not slip joint pliers), pincers and similar tools;
  • metal cutting shears and similar tools, and base metal parts thereof;
  • various other tools and machinery such as pipe cutters, screwdrivers etc.;
  • industrial or laboratory microwave ovens for making hot drinks or for cooking or heating food; and
  • objective lenses and parts & access. thereof, for cameras, projectors, or photographic enlargers or reducers, except projection.

Germany

25 %
  • sweet biscuits;
  • waffles and wafers;
  • printed books, brochures, leaflets and similar printed matter in single sheets, whether or not folded;
  • certain types of lithographs; and
  • certain types of self-propelled backhoes, shovels, clamshells and draglines and other type of machinery.

Germany or the UK

25 %
  • liqueurs and cordials

Germany, Ireland, Italy, Spain, or the UK

25 %
  • single-malt Irish and Scotch Whiskies;
  • various clothing such as sweaters, pullovers, sweatshirts, waistcoats (vests) and similar articles, knitted

    or crocheted, of wool, of kashmir goats, wholly of cashmere and of cotton; and

  • blankets and bed linen.

The UK


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