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The US is expected to dramatically escalate trade tensions with Europe this month after a decision from the World Trade Organization on Wednesday.
The US plans to levy a 10% tariff on aircraft from the bloc and a 25% tariff on other goods, including agricultural and industrial items, according to Bloomberg.
Earlier on Wednesday, the WTO reached a historic ruling that authorized the US to impose punitive tariffs on $7.5 billion worth of European products.
The new European tariffs will be in the full amount of the $7.5 billion authorized by the WTO, according to The Wall Street Journal.
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The US is expected to dramatically escalate trade tensions with Europe this month after a decision from the World Trade Organization on Wednesday.
The US plans to levy a 10% tariff on aircraft from the bloc and a 25% tariff on other goods, including agricultural and industrial items, according to Bloomberg, which cited a senior US trade official. The finalized US Trade Representative list of affected products is expected to be published within a day.
Earlier on Wednesday, the WTO reached a historic ruling that authorized the US to impose punitive tariffs on $7.5 billion worth of European products. The decision, which was the largest-ever arbitration award granted by the organization, came after the EU was found to have illicitly aided Airbus.
The new European tariffs will be in the full amount of the $7.5 billion authorized by the WTO, according to The Wall Street Journal.
The two sides have been locked in a dispute over aircraft subsidies for more than a decade and a half, with the European Union accusing US-based Boeing of similar violations. The bloc is expected to retaliate after a companion WTO case that is scheduled to take place early next year.
Read more: The chief strategist at a $1 trillion investing giant says Trump is doomed to lose his trade war — and explains why that would be the best possible outcome for markets
