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Trump threatens EU with tariffs

by Kent Covington
Posted 4/10/19, 10:43 am

President Donald Trump on Tuesday threatened to impose billions of dollars in new tariffs on the European Union in response to illegal subsidies to the aircraft builder Airbus. The United States wants to slap $11 billion dollars in tariffs on reams of European goods from aircraft to cheese and wine.

The long-running trade dispute began years before Trump took office. In 2004, the United States complained to the World Trade Organization (WTO) about the EU support of of the Europe-based Airbus. The WTO ruled last May that the EU provided some illegal subsidies to the company, which hurt the United States, especially Chicago-based Boeing. The value of Boeing stock has fallen by 13 percent since the deadly March 10 crash of an Ethiopian Air jet made by the company. Boeing said this week it hasn't received any new orders for its beleaguered 737 Max in more than a month.

“The EU has taken advantage of the U.S. on trade for many years. It will soon stop!” Trump tweeted Tuesday.

The EU argues the United States is exaggerating the issue and vowed to retaliate against any new tariffs. Whether the United States can impose the tariffs depends on a further ruling from the WTO.


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Comments

  • OldMike
    Posted: Wed, 04/10/2019 04:36 pm

    Regardless of the competitive advantage the illegal subsidies might have given to the European aircraft manufacturer Airbus, I think a lot of Boeing’s woes are of their own making. 

  • Cosmo
    Posted: Thu, 04/11/2019 02:45 pm

    These subsidies have been going for years.  That has to have contributed to Boeing trying to cut corners in order to be competative.  We could subsidie Boeing, but I'm opposed to government being involved in enterprise, even though they are and we can't do much about it.  When I was in the Air Force, back during the Viet Nam War, we considered Boeing the safe planes to fly.  Not that the others weren't, but the old 707 flew for many years around the world, and had very few accidents.  The 737 had a history of no lost time accidents for many years.  Now, with the "new age", we see many things changing, and not for the better.  Air Traffic controllers entrance requirements have been lowered, the standards of what is safe has been lowered, the accountants and MBAs have taken over control of what flies and what doesn't, and I'm only going places I can drive.  At least until AOC gets her trains that can take me to Hawaii.  Well, maybe not, but I'm reluctant to get on an airplane any more.

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