EU Imposes Retaliatory Tariffs On US Over Boeing-Airbus Spat

The European Union says it will impose tariffs on up to $4 billion worth of U.S. goods and services over illegal aid for plane maker Boeing.

EU Commission Executive Vice-President Valdis Dombrovskis said in spite of best efforts, they can confirm that the European Union would  impose counter-measures awarded them by the WTO.

In response, .S. Trade Representative Robert Lighthizer expressed disappointment by the tariffs enters into force on Tuesday

The WTO had ruled that Boeing was given an unfair edge over Airbus by tax breaks from Washington, where Boeing once had headquarters.

But after the WTO decision, the state repealed the tax breaks, making the EU’s complaint obsolete in the view of U.S. officials.

European trade ministers agreed on the move a few weeks after international arbitrators gave the EU the green light for such punitive action.

The World Trade Organization had deemed illegal some U.S. support for Boeing, a bitter rival to Europe’s Airbus, and said the EU could make up for that with a limited amount of penalties on U.S. trade.