European Union needs to stop taking advantage of the US

European Union needs to stop taking advantage of the US

European Union needs to stop taking advantage of the US

US President Donald Trump on Tuesday said the United States would impose tariffs on $11 billion of products from the European Union, a day after the US Trade Representative proposed a list of targeted products as retaliation for European aircraft subsidies.

President Donald Trump said Tuesday the European Union has been taking advantage of the United States for years, vowing to impose tariffs on $11 billion of products from the 28-nation bloc.

The EU and the U.S. are already engaged in a trade battle which has seen extra tariffs placed on goods imported to both regions.

"When the European Union ends these harmful subsidies, the additional US duties imposed in response can be lifted", US Trade Representative Lighthizer said in the statement. "It will soon stop!" The suggested tariff amount is subject to an arbitration at the World Trade Organization, which is expected to be issued this summer. Some auto manufacturers, including Toyota's Jim Lentz, have warned that it could reconsider up to $750 million in US investments in five Southern states if the tariff talks aren't resolved. "The EU is open to the USA offer for dialogue in order to reach a fair solution".

His tweet comes in response to a World Trade Organization ruling in May a year ago that the European Union had provided some illegal subsidies to Airbus, which is headquartered in Toulouse, France, and which has its largest North American manufacturing operation in Mobile.

The European Commission in response said it had started to put plans in place to retaliate over subsidies that the USA allegedly provide to aeroplane company Boeing.

Economists say the Trump team appears to want to use the ruling not merely to help Boeing but to heighten pressure on trading partners like Germany with which the US has a trade deficit.

Robert Lighthizer, the US trade representative, said in a statement on Monday night that the USA had lost patience with what is now one of the WTO's longest running sagas.

While the size of the tariffs is small compared with the hundreds of billions the US and China are taxing in their trade war, it suggests a breakdown in talks with the European Union over trade at a time when the economy is already slowing sharply.

The U.S. and EU have since July been negotiating how to scale back the tariffs, with Trump holding out the bigger threat of slapping tariffs on European cars - a huge industry in the region - should the negotiations not yield a result.

Tariffs on European airplanes could in theory help Boeing and hurt Airbus, whose shares were down nearly 2% on Tuesday.

French Finance Minister Bruno Le Maire told a conference in Paris that the two sides needed to reach a friendly agreement.

'This case has been in litigation for 14 years, and the time has come for action, ' said US Trade Representative Robert Lighthizer.

Noticias relacionadas

[an error occurred while processing the directive]