Listen: U.S. to impose tariffs on $7.5 billion of EU imports after WTO ruling
"US said it will move swiftly to impose tariffs of seven and a half billion dollars on European Union imports later this month after the World Trade Organization ruled that Airbus received illegal subsidies from the block the WTO decision comes after a fifteen year battle and has the biggest arbitration award ever by the trade regulator the WTO WTO is expected to rule on a separate but related EU case against the US subsidies to Boeing pending the world's two biggest plane manufacturers against each other joining me now via skype from Brussels his Wall Street Journal reporter. Amre pay car emory give us the background of this case typically the United States and the e U as allies would resolve resolve something like this without going to the WTO so what happened here well first of all they go to the WTO to sort of try and settle these cases through negotiations and both the US N D you have litigated against Airbus and Boeing respectively saying that had each side provided illegal subsidies to their playmakers to give them a leg up as they competed for orders on the global arena and and as a result the WTO said Yup the US did wrong and Yup the EU the wrong to your both guilty and you guys should really sit it down and settle this but instead the two sides refuse to sort of come to an agreement over what steps they would have to take in order to make make the problem go away which brings us today whereby we have this new WTO award that entitles the US to slap thing you with tariffs on goods worth seven point five billion dollars annually and also pending in a separate but related case is the case that the EU has filed against the United added states subsidies to Boeing. How is that case expected to go considering today's ruling yes so today's ruling in the use case against Airbus was is the final step of the fifteen year old processes described to end the e U in its own case against buying has already one in the sense that that'd be attached ruling saying certain practices tax breaks incentives that the US on a state or federal level provided for Boeing were illegal now now. The question is how much in dollar amounts does the e you get to hit the US with tariffs if it doesn't fix those problems yeah so. It's not a question of will the EU win the EU has already won. It's by how much do when and the general consensus basis is that the US has put in a claim for about eleven twelve billion dollars worth of damages but the general consensus is that it will come over sure and at the level competitive to award that the US gut today but at the same time this also threatens to escalate the trade fight between the US and the European in Union doesn't it and then what about Airbus versus Boeing absolutely the trade situation between the US is far from great for a a year and a half almost. There's been a shaky truce that was struck at the White House agreement with President trump but the two sides have not been able to blew up to the promises of that agreement to strike a limited trade agreement and also eliminate bureaucratic hurdles red tape across the Atlantic to facilitate more trade great and they've been trading barbs saying you know we can't move forward because the Europeans won't budge on agriculture and the Europeans are saying we can't move forward because the Americans are straying from the spirit of the agreement at the White House so at a point where the two sides had just enjoyed about just over a year of a break from tit-for-tat tariff war that started when president trump impose tariffs on steel and aluminum exports from I'm the U. This threatens to rekindle took for tariffs across the Atlantic and forever and Boeing. It's really a lose lose because they'll L. Maybe it'll give planemakers in their home. Markets a leg up over their rival but it'll hit global supply chains. They'll make planes more expensive. It'll make sales harder and ill make them fight each other at the time and as the two biggest playmakers in the world they should be really watching their back and and try and take their marketshare given the competition that's slowly coming up from China and Russia Wall Street Journal reporter pay car. Thanks so so much"