US tries to protect Boeing by imposing extra tariffs to EU-made planes


The United States increases the import levy on European-made aircraft. The new 15 percent rate will start on March 18, reports the US trade representation USTR. An import tax of 10 percent still applies.

The import tariff is part of the retaliation measures taken by the US due to illegal European subsidies for aircraft manufacturer Airbus. The World Trade Organization (WTO) stipulated last year that Washington may impose $ 7.5 billion in criminal charges on European goods because the EU has failed to stop illegal subsidies to Airbus.

The aircraft manufacturer says in a statement that the higher rate will mainly affect American airlines. They suffer from a shortage of devices. Airbus hopes that the USTR will change its mind.

Following the WTO’s verdict, Washington issued a list of European goods levies imposed in October. Since then, aircraft, cheese, wine and whiskey, among other things, have been taxed with extra. The list is now being adjusted on a number of points. By changing rates and imposing levies on other products, the Americans want to harm Europe and make exporters uncertain.

The dispute between the US and the EU about subsidies for aircraft manufacturers has been going on for more than ten years. This year the WTO is ruling in an EU-initiated case on US state aid for Airbus rival Boeing.

By: Nicholas de Kramer

Nicholas de Krammer, а self-taught economic analytic with heave mathematical background. Math behind the economics (and economics behind math) is the strong side of the author. Contact him at

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