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U.S. imports of Scotch whiskey fell 33% after tariffs were imposed last year
The US has said it will threaten $ 7.5 billion (£ 5.75 billion) worth of tariffs on European and British goods it solves as a penalty for subsidies for Airbus aircraft.
The move comes as both sides struggle to end their 16-year trade war over state aid to Airbus and US rival Boeing.
The U.S. last year raised limit taxes on more than 100 items, including jumpers, single-malt whiskeys and cheeses.
It has said that the EU has not done enough.
“The EU and its Member States have not taken the necessary action to comply with WTO decisions,” said United States Top Trade Officer Robert Lighthizer on Wednesday. “However, the United States has promised a long-term resolution on this issue.
The European Union cautiously anticipated the US decision not to increase the amount of goods under conditions.
“The Commission acknowledges the US decision not to increase the ongoing aviation dispute by increasing tariffs on European products,” an EU spokesman said.
Airbus last month said it would change some deals responsible for the dispute, saying the changes, including raising its interest rates on loans with France and Spain, would eliminate “any justification” for the U.S. border tax.
The move prompted EU officials to put an end to “unfair” tariffs. Many U.S. companies have also protested against the obligations, which increase prices for U.S. buyers.
On Wednesday, Airbus spokesman Clay McConnell said in a statement that the company “regrets that, despite Europe’s recent actions to achieve full compliance, USTR [US Trade Representative] has decided to keep fares on Airbus planes – especially at a time when aviation and other sectors are going through an unusual crisis. “
When did the rates start?
The US announced tariffs of $ 7.5 billion in goods last year after the World Trade Organization ruled that state aid provided to Airbus to launch its A380 and A350 jets was illegal and authorized U.S. revenge.
In February, the US increased the rates on aircraft from 10% to 15%, which did not change the 25% right to other articles.
This summer, U.S. officials are threatening to raise rates again if new items are subject to import taxes.
The items threatened with new duties included salmon fillet, gin and olives.
The US is required by law to periodically review rates. On Wednesday, it announced minor tweaks to the list, such as removing sweet cookies made in the UK and adding jams from France and Germany.
Commerce Attorney Jamieson Greer, former chief of staff to U.S. Trade Representative Robert Lighthizer, told the BBC: “The reality is that all of this can be resolved if Airbus takes some action to provide restitution.”
More rates ahead?
The European Union, which has launched its own case challenging US subsidies for Boeing, has threatened to hit the US with its own tariffs. It is up to the World Trade Organization to decide how big such a penalty could be.
The US in May said it had eliminated the benefits in dispute. That WTO ruling is expected later this year.
“In the absence of a regulation, the EU will be ready to take full advantage of its own sanctions rights,” Trade Commissioner Phil Hogan said last month.
The problem has also complicated trade talks between the US and the UK.
UK Trade Secretary Liz Truss raised this issue in talks with Mr Lighthizer this month as both sides held a third round of negotiations.
The secretary “was clear that the United Kingdom considered these tariffs unacceptable and continued to push for their immediate removal”, said the Department for International Trade.
