The U.S. added more European Union products to a list of goods it could hit with retaliatory tariffs in a long-running trans-Atlantic subsidy dispute between Boeing Co. and Airbus SE.

The Trade Representative’s office in Washington on Monday published a list of $4 billion worth of EU goods to target in retaliation for European aircraft subsides. The products range from cherries to meat, cheese, olives and pasta, along with some types of whiskey and cast-iron tubes and pipes. It adds to a list of EU products valued at $21 billion that the USTR published in April, according to the release.

The EU has a similar case pending against Boeing and has readied retaliatory tariffs of its own. Though the dispute predates President Donald Trump’s efforts to overhaul America’s big trading relationships, the timing of the latest punitive measures will add to already strained ties between Washington and Brussels.

The airplane subsidy spat and the tariffs both sides are threatening contrast with the Trump administration’s other high-profile trade moves because they’re playing out under WTO rules rather than by unilateral White House authority. Under Trump, the U.S. has called for sweeping changes at the Geneva-based WTO and is currently blocking nominees to its appeals panel -- a move that may paralyze the institution’s dispute-settling capacity by year end.

The latest U.S. targets were identified following a two-day hearing in Washington in May when 40 stakeholders made their cases about the countermeasures. The USTR said a public hearing on the proposed additional $4 billion worth of products will be held Aug. 5.

The USTR estimates the EU subsidies to Airbus cause approximately $11 billion in economic harm to the U.S. annually. The World Trade Organization has found the EU subsidies violate international trade rules and it’s expected to decide this summer on the amount of countermeasures the U.S. can impose.

“The final list will take into account the report of the WTO Arbitrator on the appropriate level of countermeasures to be authorized by the WTO,” USTR said Monday.


Airbus shares fell as much as 1.4% in Paris on Tuesday. The European planemaker, which has repeatedly called for a negotiated settlement, said by email that the USTR proposal will only add to tensions.

“That is not creating a healthy environment for working towards a negotiated solution and risks a wide variety of industries on both sides of the Atlantic to arrive in a lose-lose situation,” Airbus said.

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