Airbus deeply regrets US tariff hike from 10% to 15%

Airbus says decision further escalates trade tensions between US and EU


Afp February 16, 2020
Airbus file photo. PHOTO: REUTERS

WASHINGTON: The United States is increasing tariffs on Airbus planes imported from Europe to 15%, authorities announced, in a move the aerospace giant said on Saturday was deeply regrettable.

Friday’s decision to hike tariffs from March 18 “further escalates trade tensions between the US and the EU”, the European aerospace giant said in a statement, adding it creates “more instability for US airlines that are already suffering from a shortage of aircraft”. The announcement from the office of the United States Trade Representative (USTR) came just days after President Donald Trump said it was time to talk “very seriously” about a trade deal with the European Union. Duties have been at 10% since October, when Washington hit European products worth $7.5 billion with tariffs.

“Airbus deeply regrets USTR’s decision to increase tariffs on aircraft imported from the EU as well as the decision to maintain tariffs on goods from other sectors,” the company said, referring to products - including cheese, coffee and olives - which have been taxed at 25% since October.

The latest decision also “ignores the many submissions made by US airlines, highlighting the fact that they - and the US flying public - will ultimately have to pay these tariffs”, it added. The German finance ministry said it had taken note of the move by the United States and reiterated its stance on tariffs.

“Our basic position is clear; we reject any unilateral increase in customs taxes,” it said in a statement. Washington imposed punitive taxes on the $7.5 billion in European products after the World Trade Organisation (WTO) gave the United States the green light to take retaliatory trade measures against the EU over its subsidies to European aerospace giant Airbus.

Published in The Express Tribune, February 16th, 2020.

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