Trade

US to press on with higher Airbus tariffs despite recession fears

Despite fears of a global recession, the Trump administration will press on with its plans to raise tariffs on European aircraft to 15 percent on Wednesday, up from the current 10 percent, a U.S. Trade Representative spokesman told POLITICO.

The “Federal Register notice says 12.01 a.m. on March 18,” he said, referring to the official notice of the tariff increase published last month.

The move is a sign that EU-U.S. talks on a trade deal have stalled.

Washington had threatened the increase since February, but EU trade chief Phil Hogan previously said he hoped to strike a trade truce by March 18 to avoid an escalation.

“The 30 days suspension period expires on the 18th of March,” Hogan told reporters last month. “Between now and then we are trying our best to have a mini-deal based on the terms of reference that were given to us … by President von der Leyen and Trump in Davos.”

Brussels cant legally retaliate against these latest tariffs, because they were authorized by the World Trade Organization, in the long-running dispute over government support for Airbus.

U.S. airlines, already struggling under coronavirus travel bans, had asked Washington to scrap any tariffs on Airbus. They have paid more than $50 millRead More – Source