After years of dispute: WTO allows punitive EU tariffs on US imports

After years of disputes over subsidies for aircraft manufacturers, it is now clear: The EU can impose billions of tariffs on American imports. That was decided by the World Trade Organization in Geneva.

The dispute has been simmering for more than 15 years; Now the World Trade Organization (WTO) has spoken a word of power in Geneva: The EU can impose punitive tariffs on imports from the US, amounting to almost four billion dollars. This was determined by independent mediators and therefore fell far short of the demands of the Europeans: they had claimed twelve billion dollars in damages.

They are said to have arisen from unauthorized subsidies that the United States paid to its national aircraft manufacturer Boeing and through which European competitor Airbus was left at a disadvantage. The WTO decided a year and a half ago that these trials were justified; So now the amount of punitive tariffs that the EU intends to offset has been determined, so to speak. Brussels has already announced excise duties on ketchup, game consoles and other American products.

The United States can also impose punitive tariffs.

But there have also been complaints from the United States: for example, Europeans illegally subsidized Airbus, which in turn left Boeing behind. Therefore, independent WTO arbitrators had also allowed the United States to impose punitive tariffs on imports from the EU worth 7.5 billion dollars.