Listen: WTO $7.5B in tariffs on EU goods for Airbus case
"The World Trade Organization gave president trump the go ahead to impose tariffs on as much as seven and a half billion dollars worth of European exports a year in retaliation for illegal government aid to Airbus the award is the largest in WTO history we want to get more about it now from Bloomberg news World Trade Organization reporter Bryce investor joining us now down the line from Geneva Bryce thank you for taking the time with us today thank you Amy that number seven and a half billion. dollars does that surprise you it's a big deal it's it's going to provide a pretty big stick for Donald Trump to hit the U. S. when when and if he feels like doing so. all right let's talk about where that number is in the annals of history because my understanding is it's a record. yeah the the the second largest ruling came in two thousand two when the E. you want a arbitration award of four billion dollars against the United States for its on fair trade taxed actresses so we're talking almost are are almost twice as much exactly it's a big deal and and as of right now the the U. S. is basically thinking about which products it wants to target with these terrorists U. S. T. R. is traded a list already that has products that range from E. U. aircraft wine cheese of luxury goods and I'd say in the next you between now and the end of the month we'll know exactly which products the US is going to target do we expect the terrorists to hit that quickly. all the earliest that the U. S. terrace to going to a fact is about mid month there's some procedural angles that have to be sorted out here in Geneva but once those are done the U. S. can fire away it will. how would the E. U. then respond because they've already said that they are ready to retaliate indeed the easier it will be on under pressure to retaliate pretty quickly unfortunately it won't be able to legally do so until maybe the first half of next year when the E. U. R. which are when the WTO is set to rule on a separate but parallel dispute over U. S. subsidies to Boeing now that kind of creates this gap where the he's going to be under pressure and there's a potential that this commission which will be a new commissioner under Phil Hogan may actually dust off some old WTO cases and like I mentioned that that four billion dollar our award they may put that into effect against the U. S. pretty quickly okay you know what you just help to clarify something for me and I want to I want to ask you maybe if I'm barking up the wrong tree but what what you were talking about is how the if they do want to retaliate it won't be until the middle of next year early next year okay fine but then that leads to possibly an extended protracted **** for tat kind of terror versus terra thing which is that but it looks like the E. U. doesn't really want they've already said that they would like to work with the U. S. to avoid this terrible war is that why because they can't really afford nobody could really afford to have this be as protracted as intense as it looks like it could be. I mean despite the president's claim that trade wars are easy to win D. E. you have a different perspective there is the commission believes that this is a lose lose situation for everybody I mean it's safe to say that if these terrorists going to a fact on both sides the E. U. in the US will move into a very dangerous phase of trans Atlantic trade relations. at the same time the United States is already in a trade war with China if they also enter a trade war with the E. U. or a terrorist issue let's call it that with the E. U. health threatening is that just to the global economy I mean at minimum it seems like economic uncertainty. it's too soon to say I I assume the folks in Washington at USC are are considering exactly that question but at least from the E. U.'s perspective they anticipate the deputy the U. S. to move forward with these terrorists going through the story here on the Bloomberg terminal and it is voluminous and comprehensive is very well done U. S. wins record seven and a half billion dollars sanctions over a you the bat by you. you mentioned something called carousel retaliation could you explain what that is this is a pretty nasty way of retaliating that the US is considering how it's not final at this point but in a standard terror for television scenario a country will take a list of goods from another country upon which will impose tariffs in a carousel retaliation that list of products ships periodically which means that it increases the uncertainty and pain for in this case European companies that may be subjected to this because it it creates a larger pool of companies that will be affected what would be the disadvantage to the US for doing something like that why would they not do that. well at the end of the day this new these terrorists will be passed on by the companies in Europe in the form of increased prices to U. S. consumers so with these products whether they be cheese champagne luxury handbags are going to get a lot more expensive for US consumers US consumers of the bedrock American economy so that could potentially have an impact on the future trajectory of the US economy in very very briefly in about fifteen seconds do we know when the U. E. U. is able to respond we know what they might be targeting yes Dave created a list of about twenty two billion dollars worth of American goods those include motorcycles Boeing aircraft and Bourbon whiskey she could see those products hit as soon as next year."