By changing goals without raising rates, Washington has managed to please some countries, such as Italy, while others are calling for others.
The decision was made under a “carousel” trade ban requiring the US Trade Representative to review its list of $ 7.5 billion worth of EU and UK goods every six months.
Brussels welcomes Washington’s decision not to escalate the trade war.
“The Commission acknowledges the US decision not to increase the ongoing aviation dispute by increasing tariffs on European products,” a spokesman said Thursday. EU Trade Commissioner Phil Hogan sei he would continue to work “to find a negotiated solution to persistent trade irritants.”
But France’s Trade Minister Franck Riester criticized Washington for maintaining tariffs, which he called “unjustified.” The country’s Economy Minister Bruno Le Maire stressed the need to find a speedy settlement to the Airbus-Boeing dispute, while calling on the EU to take revenge if an agreed solution is not possible.
Some also saw the move to increase the balance of tariffs for France and Germany as a way to punish those countries for pushing policies that Washington has repeatedly rails: Paris’ pursuit of a tax for digital services that greatly undermines American technology companies would retire, and Berlin’s did not meet a NATO defense spending target as well as the controversial German-Russian gas pipeline project, Nord Stream 2.
“The shift in burdens away from Greece and the United Kingdom and to France and Germany is a classic for the Trump administration,” said Lucio Miranda, president of ExportUSA consulting.
Donald Trump is “showing a friendly face to the UK in the midst of negotiations for a bilateral trade agreement”, while sending a strong reminder to France and Germany about their policies, Miranda said in an email.
The Spanish government, meanwhile, said in a statement that it “rejects the tariff list decision” and “trusts that an agreement can be reached that will restore trade relations to normal between the two countries, which have mutual economic interests.”
British Trade Secretary Liz Truss said she was starting talks with the US to raise tariffs as they continued to weigh in on industries such as single-malt Scotch whiskey, cheese and construction equipment. Truss said that while she welcomes the removal of cookies such as Scottish shortbread from the list, the remaining tariffs continue to “harm the industry and exist on both sides of the Atlantic.”
Unlike other member states, Italy welcomed the US decision and saw it as a victory for diplomacy in the dispute. Ivan Scalfarotto, Italy’s secretary for trade, said he was ‘satisfied’ with the renewal and stressed that Rome had been in constant dialogue with Washington in recent weeks.
The German government had not released an official response since Thursday afternoon.
It could be less
Unsurprisingly, the decision-making industry that suffered the least was not happy, while others brought a sigh of relief.
The jam industry – which is now being hit by new tariffs – complained that Washington’s movement was specifically targeted at France and Germany.
“France and Germany are some of the largest [jam] producing and exporting countries. It is no coincidence that the US did choose, ‘said a spokesman for Profel, a European association representing French and German jammers.
France’s wine export lobby also endorsed the decision to keep 25 percent tariffs on certain wines and called on French and European authorities to compensate the sector for the damage it suffered.
In a statement, Airbus said it regretted that Washington maintained tariffs on its aircraft, despite the company’s recent attempt to include existing subsidies in a bid to end the dispute.
Europe’s largest industry lobby BusinessEurope also condemned the US decision. “We regret that the US has once again decided against a negotiated solution that could put an end to this dispute,” said Luisa Santos, Head of BusinessEurope.
Italian farmers – who were worried about potential new duties on wine, olive oil and pasta – were one of the few who awaited the decision, despite levies on Italian products, including cheeses, salami and liquors.
Trump decided to “grace” Italian food products by not introducing new tariffs for Italian food products, said Italy’s largest farm lobby Coldiretti.
Ulrich Adam of the liquor lobby spiritsEUROPE also notes that the US response was “limited” and called on both parties “to redouble our efforts to resolve the dispute quickly” despite “being disappointed to see that 25 per cent rates on many EU products remain in place. “
The Scottish whiskey industry was also spared. “It is deeply disappointing to see that the 25 percent tariff on exports of Single Malt Scotch Whiskey to the US has been maintained by the U.S. government,” said Karen Betts, chief executive of the Scotch Whiskey Association. The tariffs are causing “major damage” to the sector, she added, pointing out that exports to the US have shrunk 30 percent since the tariffs went into effect.
While Brussels continues to plead for a settlement, it is also awaiting a decision on its counter-complaint against Boeing to the World Trade Organization. In the autumn, the WTO is expected to decide on the amount of tariffs that the EU will allow to set up US goods for illegal aid to Boeing.
Doug Palmer contributed reporting.
