Tariffs would impact Airbus-Mobile

The U.S. and European Union (EU) are preparing to impose tariffs on each other’s products in connection with the 14-year fight over government aid given to Boeing and rival Airbus. The U.S. requested authority to impose retaliatory tariffs of $11.2B annually. The two sides are awaiting a decision on the level of tariffs that the U.S. will be authorized to levy on the EU. The proposed tariffs would include airplane sections and parts shipped into Mobile, Ala., to build A320-series jetliners. Airbus and Boeing compete for industry dominance. Both sides have been judged by the World Trade Organization (WTO) to have paid billions in subsidies to gain advantage, and have been asked to stop or face potential sanctions. (Sources: multiple, including New York Times, al.com, WKRG-TV, 04/09/19, FOX10, 04/10/19) In Brussels this week, EU countries gave initial clearance to start formal trade talks with the U.S. The European Commission said it had started to draw up plans to retaliate over subsidies for U.S. planemaker Boeing. Both sides have won partial victories at the WTO in claiming the other’s planemaker received unlawful subsidies, but disagree on the amount involved and whether each has complied with earlier WTO rulings. (Source: Reuters, 04/11/19)