A new development in the long-running riot over illegal subsidies to Airbus and Boeing: After the US introduced a 15 percent import tax on European-built aircraft last year, the EU is now doing the same with US-built aircraft.
In retaliation, there will also be an additional 25 percent import duty on some other products, such as tractors, sweet potatoes, tobacco, frozen orange juice and ketchup. In total, it concerns a package worth 4 billion dollars.
Airbus was partly able to avoid US tariffs because the aircraft manufacturer has an assembly plant in Mobile, Alabama. Boeing does not have a production line in Europe.
The conflict revolves around subsidies and tax rebates granted years ago, for example in the development of new aircraft, such as the Airbus A350, which are in violation of trade agreements. Both the EU and the US have received approval from the World Trade Organization for retaliation.
