U.S. holds tariffs on EU products over Airbus aid

The U.S. said tariffs on European Union products will remain unchanged, despite efforts by plane maker Airbus to move into compliance with a World Trade Organization decision over state aid.

The Office of the U.S. Trade Representative said the amount of products subject to countermeasures will remain unchanged at $7.5 billion, and the tariff rates will remain unchanged at 15% for aircraft and 25% for all other products.

Airbus AIR, -1.58% shares traded lower in Paris on the news.

The USTR said it is removing from the tariff list certain products from Greece and the U.K. and adding an equivalent amount of trade from France and Germany.

“The EU and member states have not taken the actions necessary to come into compliance with WTO decisions,” said Ambassador Robert Lighthizer.
The European Commission said it welcomed the U.S. decision not to “exacerbate” the dispute, as Airbus called on European countries to defend its interests.

The U.S. Wine Trade Alliance criticized the decision to keep 25% tariffs on French wine, and the Distilled Spirits Council called on the U.S. to remove the 25% tariffs on single-malt Scotch and the EU to remove the 25% tariff on American whiskey.

Scottish shortbread and lingonberry jam were among the products no longer subject to tariffs.

Source: Market Watch