The tense trade relationship between the U.S. and Europe is about to get worse.... as the Trump administration is threatening to impose tariffs on European goods worth billions of dollars.
Hong Yoo reports.
The U.S. is considering imposing tariffs on 11 billion U.S. dollars worth of goods from the European Union due to EU subsidies that support Boeing's rival Airbus.
President Trump tweeted on Tuesday that "The World Trade Organization finds that the European Union subsidies to Airbus have adversely impacted the United States, which will now put Tariffs on 11 billion U.S. dollars of EU products" and he added that the EU has taken advantage of the U.S. on trade for many years.
The U.S. Trade Representative verified they are preparing a list of European products to tax as retaliation for European subsidies to Airbus, which had been ruled as illegal by the WTO in May 2018.
In response, the EU said the tariff was "greatly exaggerated" and they announced that they too are making a list of tariffs to counter American subsidies to Boeing.
These tit-for-tat tariffs started when President Trump taxed European steel and aluminum last year and threatened to impose tariffs on their cars and car parts as well if the EU did not agree to better trade terms for American products.
In retaliation, the EU imposed 3-point-2 billion dollars worth of tariffs on U.S. goods last June.
The U.S. decision to impose tariffs is expected this summer as soon as the WTO makes its ruling.
Hong Yoo, Arirang News.