The European Union (EU) has imposed additional tariffs on approximately $4 billion worth of U.S. goods, after a World Trade Organization (WTO) decision last month authorized proportionate retaliation against the U.S. for its subsidies to Boeing. According to the European Commission’s (EC) Implementing Regulation (“the Regulation”), published in the Official Journal of the European Union on November 9, 2020, negotiations with the U.S. to settle the dispute over subsidies to their respective aircraft industries “have so far not yielded results,” while the U.S. still maintains tariffs on approximately $7.5 billion worth of European goods as a result of a parallel WTO decision authorizing U.S. retaliation against the EU.
Effective upon the date of publication, the EC has adopted duty rates of 15% for civil aircraft and aircraft parts under the tariff codes 8802.40.0013, 8802.40.0015, 8802.40.0017, 8802.40.0019, and 8802.40.0021. A rate of 25% was adopted for all other listed U.S.-origin imports. The list of goods subject to 25% tariffs, with product descriptions, can be viewed here. The rates of 15% and 25% reflect the rates currently imposed by the U.S. on imports of EU-origin goods.
In U.S. Trade Representative Robert E. Lighthizer’s statement in response to the EU’s announcement of retaliatory tariffs, he expressed disappointment and noted that the main subsidy to Boeing—a Washington State Business & Occupation tax break—that was alleged at the WTO was repealed earlier this year.
Husch Blackwell continues to monitor the situation closely and will provide further updates as more information becomes available. Should you or your company have any questions or concerns regarding the EU’s announcement of new tariffs, please contact our International Trade and Supply Chain team.