U.S. hikes tariffs on EU aircraft to 15 pct amid subsidy dispute

The United States is increasing the additional duty rate imposed on aircraft imported from the European Union (EU) to 15 percent from 10 percent, effective from March 18, the Office of U.S. Trade Representative (USTR) announced Friday.

After World Trade Organization (WTO) ruling on aircraft subsidies last year, the United States levied additional tariffs on a wide range of EU goods, which took effect on Oct. 18, a move that has fueled trade tensions between the two sides.

In the newly released statement, USTR Robert Lighthizer said he has determined to revise the action based on a review of the Section 301 action and following public comments.

Aside from hiking the tariffs for certain large civil aircraft, he is also modifying the list of other products of “certain current and former EU member states” subject to additional 25 percent duties, effective March 5.

Prune juice, concentrated or not, was removed from the list, while butchers’ or kitchen chopping or mincing knives have been added to the action.

According to an earlier statement from the Office of the USTR, new airplanes and other aircraft from Britain, France, Germany and Spain are subject to additional tariffs of 10 percent, while Scotch whiskies, cheese, olives, yogurt, and sweaters from certain countries are among the products to be hit by an additional tariff of 25 percent.