Boeing Subsidies Merit EU Tariffs on $4 Billion in U.S. Goods, WTO Rules
EU expected to refrain from imposing tariffs quickly in the hope of negotiating a settlement with the U.S.
The World Trade Organization on Tuesday said the European Union may impose tariffs on $3.99 billion in Boeing Co. jets and other U.S. goods as part of a long-running trade dispute.
The ruling clears the way for the EU to respond to tariffs that the trade body last October authorized the U.S. to impose on $7.5 billion in Airbus SE jets and other imported European products. Washington in 2004 took European countries to the WTO over subsidies to Airbus, and Europe responded soon after with a case against U.S. support to Boeing.
WTO rulings since then have found that both sides provided prohibited subsidies, but Europe did so to a greater extent.
EU officials have recently said they hope to negotiate a settlement with Washington, so many observers expect Europe to refrain from levying tariffs quickly. The EU last year said it had prepared a preliminary list of U.S. products to target for retaliation, if necessary.
The U.S. Trade Representative and Boeing have said Tuesday’s WTO ruling has no impact because the underlying violation—a tax break in Washington state—has been repealed.