(Added industry reaction etc.)
[Washington, 11th Reuters]–The US Customs and Border Protection (CBP) announced on the 11th that it will collect additional tariffs on products such as aircraft parts imported from France and Germany at 0:01 am on the 12th (Japan). It was announced that it would start at 2:01 pm.
Part of a long-standing US-Europe trade dispute over subsidies for European aircraft giant Airbus and Boeing.
The Office of the United States Trade Representative (USTR) has previously announced that it will impose an additional 15% tariff on some aircraft parts imported from France and Germany and a 25% tariff on some wine.
According to European sources, talks between the US and Europe to resolve the dispute have been stagnant recently. The European Union (EU) has expressed its intention to aim for an early breakthrough in consultation with the next US President Joe Biden, who will take office on the 20th. Mr. Biden’s transition team has not commented on the issue.
The World Trade Organization (WTO) has approved the US to impose tariffs on EU goods worth $ 7.5 billion in a US-Europe dispute over aircraft subsidies. The EU is allowed to impose additional tariffs on $ 4 billion of US imports.
Airbus is “unproductive” that USTR has extended tariffs to French-German aircraft parts, adversely affecting US workers at the Alabama Mobile plant assembling “A320” and “A220” aircraft. Pointed out that it will reach.
The aircraft is already subject to US tariffs, but by assembling it at the mobile factory, it was possible to sell the aircraft without tariffs. This loophole has been closed by the addition of parts to tariffs this time. If the dispute is not resolved early, these aircraft are likely to lose their competitive edge in the US market.
Tariffs on alcoholic beverages have also been expanded. The French wine export industry group said it was a “hit”.
Ben Annev, the head of the U.S. wine trade group, accused the USTR of not exempting goods already in transit, unlike past tariffs, as “extremely unreasonable” and announced tariffs last December. We asked the USTR to exclude products that were in transit as of the 30th.
Many US operators, including restaurants that have already been hit by closures related to the new coronavirus, will face significant cost increases.
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