EU imposes $4 billion tariffs on U.S. products despite Biden victory
The European Union on Monday announced plans to impose $4 billion in tariffs on U.S. goods after similar U.S. tariffs were levied last year, a move that adds to the list of international disputes that President-elect Joe Biden will have to resolve once in office.
EU trade ministers who approved the measures took pains Monday to say that they did not intend the tariffs to be seen as escalatory and that they hoped both Washington and the European Union could remove them as soon as possible. But the decision - which takes effect Tuesday - nevertheless may force Biden to weigh in on a transatlantic trade dispute early in his administration.
The tit-for-tat trade measures are part of a 16-year fight between the United States and Europe about whether Airbus and Boeing are being given illegal state aid. The World Trade Organization allowed the United States to impose tariffs last year because of improper subsidies offered to Airbus. In October, the WTO decided that the European Union could do the same because Boeing had received similar support. The WTO's final green light came Oct. 26.
"We are not escalating anything. We are exercising our rights as awarded by the WTO," said German Economy Minister Peter Altmaier.
"We are just mirroring the U.S. approach," he said. "We are ready to withdraw or suspend our tariffs at any time when the U.S. is ready to do so on their side, whether it is the current or future U.S. administration."
The EU is set to publish a list of the goods on which it will impose levies later Monday. Officials declined to say ahead of time what products would be targeted, but draft lists have included airplanes, wine and liquor, tractors, motorcycle parts and U.S. meat and produce, among other products.
The $7.5 billion in U.S. levies last year included French wine, Italian cheese and British cashmere.
Altmaier said EU ministers decided to move forward with the tariffs in part because the Biden trade team - and any accompanying change in U.S. policy - is unlikely to be in place until February or March. Biden has a more conciliatory approach to trade issues than President Donald Trump, who imposed tariffs on European steel and aluminum exports that were not connected to the aircraft dispute.
