MoneyNewsScienceWorld

US raises the tariff rate for Airbus aircraft

UNITED STATES (OBSERVATORY NEWS) — The United States announced on Friday that it will increase the tariff rate imposed on Airbus aircraft imported from Europe from 10% to 15%, without changing the value of the fees imposed on other sectors of exchange between the two sides of the Atlantic Ocean.

European Air Industries Group Airbus responded Saturday, expressing “deep regret” at the US decision, which it considered “creates greater instability for US airlines that are already short of aircraft”, due to a ban on the operation of its rival 737 MAX aircraft .

“We take note of the announcement by the United States,” a spokesman for the German Economy Ministry told AFP. “Our basic position is clear: We reject any increase in customs duties unilaterally, because it is harmful to everyone, including the United States.”

European ministers may take advantage of scheduled meetings Monday in Brussels to express a common position in this regard.

Since October, in response to subsidies received by the European aircraft manufacturer, the US administration has imposed tariffs on European products worth $ 7.5 billion, including wine, cheese, coffee, olives and coats, which amount to 25%. But so far, the planes were still subject to a 10% fee, and would become 15% as of March 18.

Added to the old dispute that started 15 years ago between Airbus and Boeing across the countries that compute it, is the trade tensions between Washington and the European Union.

Consequently, with each new decision, the concerned sectors will catch their breath in the hope that it will be withdrawn from the list of fees, fearing the increase in the percentage of fees imposed on them.

– Negotiations –

However, US President Donald Trump uses these fees as a negotiating tool.

After months of trade war against China after signing punitive customs duties, Trump said, “Our strategy succeeded” when the two countries signed an agreement in mid-January.

It is currently focusing on Europe. Trump and European Commission President Ursula von der Leyen announced in late January after a meeting in Davos, Switzerland, their desire to revive the trade workshop between the two shores of the Atlantic Ocean and reach an agreement in the coming weeks.

But so far, the negotiations have not reached any outcome and relations are still tense, while Trump still threatens to impose tariffs on imported European cars, which raises in particular the concerns of German manufacturers.

The US President said on Monday that it is time to negotiate “seriously” a trade agreement with the European Union, expressing “his hope that the European Union member states will open their markets more to American products, especially agricultural products.”

The US administration recently threatened to impose “up to 100%” taxes on French products valued at $ 2.4 billion, which raised the concerns of manufacturers as well as American importers of French wine who estimated in a letter to the US Representative Office that between 11,200 and 78,600 people would lose Their jobs are in the United States if this decision is made.

“Frustration” –

For their part, French vineyards are asking the French government for a compensation fund of 300 million euros to compensate them.

“I understand their deep frustration with taking them hostage,” Airbus president Guillaume Fouri said at a press conference Thursday in Toulouse, saying that the attack on Airbus “is not the right solution.”

Airbus officials Friday met in its headquarters in Toulouse, representatives of the French wine industry “with a view to setting a common and unified strategy” and “identifying urgent joint steps that must be taken by the French state and the European Union in the coming days,” according to a joint declaration published Saturday.

In October, after a 15-year legal battle, the World Trade Organization allowed Washington to impose standard sanctions, considering that the European aircraft manufacturer had benefited from unjustified subsidies.

In the spring, the organization is supposed to allow the European Union to impose tariffs, in response to unjustified subsidies by the US administration of Boeing.

Online:

This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.

Our Standards, Terms of Use: Standard Terms And Conditions.

OBSERVATORY

Contact us: [email protected]

Stay connected with Observatory and Observatory Newsroom, also with our online services and never lost the breaking news stories happening around the world.