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The United States says it would not lift nor raise 15% tariffs on Airbus aircraft and 25% tariffs on other European goods in spite of moves by the European Union to settle a 16-year-old dispute over aircraft subsidies.
Last year, the US government raised border taxes on over 100.
Now, Washington asserts that the EU had not taken actions necessary to comply with World Trade Organization decisions, and that the US would initiate a new process to try to reach a long-term solution.
“The EU and member states have not taken the actions necessary to come into compliance with WTO decisions,” US Trade Representative Robert Lighthizer (USTR) said on Wednesday. “The United States, however, is committed to obtaining a long-term resolution to this dispute.
The EU cautiously welcomed the US decision not to increase the amount of goods subject to tariffs.
“The commission acknowledges the decision of the US not to exacerbate the ongoing aircraft dispute by increasing tariffs on European products,” an EU spokesperson said.
Meanwhile, USTR said it would modify its list of $7.5 billion of affected European products, removing certain goods from Greece and Britain, but adding an equivalent amount from Germany and France.
In a statement, Airbus said the company “profoundly regrets that, despite Europe’s recent actions to achieve full compliance, USTR has decided to maintain tariffs on Airbus aircraft – especially at a time when aviation and other sectors are going through an unprecedented crisis.”
The company, however, said it “trusts that Europe will respond appropriately to defend its interests and the interests of all the European companies and sectors, including Airbus, targeted by these tariffs.”
Last month, Airbus said it would raise loan repayments to France and Spain in a “final” effort to reverse US tariffs and push the United States to resolve the long-running fight.
