The US and the EU on the verge of a new trade war

The United States is preparing to impose new tariffs on products of the European Union (EU) over an aviation industry dispute dating from 2004, which could unleash a large-scale trade war, CNBC reported on Friday.

The news channel set out that next Monday, arbitrators of the World Trade Organization (WTO) will support a request by Washington to impose levies on the EU as compensation for illegal subsidies granted by the governments of the bloc to the manufacturer Airbus.

Following the ruling, the WTO will have to analyze an EU complaint, which responded with the same accusation against the Boeing company by pointing out that it receives unfair financial assistance from the US administration.

However, the ruling in the second case could take six to nine months. The biggest corporate world battle broke out 15 years ago, when Washington withdrew a pact between both sides, signed in 1992, which regulated the aviation sector.

According to CNBC, the White House wants to impose 100 percent tariffs on EU exports with an annual value of 11.2 billion dollars.

Nevertheless, the television station stressed, the WTO will set the amount at 7.5 billion dollars.

The US list includes more taxes on aircraft and parts made in Europe, as well as drinks, motorcycles, food and clothing.

In April, the European Commission announced it was preparing its own list in retaliation totaling 20 billion dollars.

Recently, European Trade Commissioner Cecilia Malmström called for negotiations and to avoid further escalation.

'There are already enough tariffs in the world, so imposing tariffs on each other, something that the WTO authorizes us to do, would not be a good solution,' she said.

Since his arrival at the White House, President Donald Trump has launched a protectionist policy that led him to initiate a trade war with China, and to threaten similar measures against different countries, such as Mexico.



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