EU has Boeing in its sights: 'Commission working on import duty on US aircraft'
It's a ball. The European Commission has targeted Boeing for new import duties if talks with the US on a trade deal fail. The American manufacturer's planes are on a list of goods worth 100 billion euros worth of imports from the US each year.
The plan will only come into effect if the European Commission fails to negotiate a reduction in current US tariffs, business newspaper the Financial Times reports .
"We are preparing for the possibility that no deal will be reached with the US," a spokesperson for EU Commissioner Maroš Šefčovič confirmed to RTL Z. "All options are on the table." At the same time, the spokesperson does not want to go into details. "Reaching a deal is our preference," he further emphasizes.
Multiple leviesThere are currently two levies on imports from the EU to the US. First, there is an import duty of 25 percent on steel and aluminum from outside the US. And there is a general import duty of 10 percent on almost all EU exports to the US. This last duty is part of Trump's global package of levies. The American president introduced this in early April in retaliation for what he sees as unfair trade practices against the US.
Initially, the EU was hit with a 20 percent tariff. After stock markets around the world plunged deep into the red due to fear of the consequences of the trade war, Trump lowered the tariffs, to 10 percent for the EU. Only the tariffs against trade arch-enemy China remained high, and were even increased.
NegotiationsThe EU is now negotiating - as are other US trading partners - with the US government on a trade deal. In case this does not work, new measures are also being worked on behind the scenes. Such as a levy on aircraft from one of America's largest companies: Boeing.
The EU imported 18.3 billion euros worth of American aircraft and aerospace components last year, according to Eurostat figures. Chemical products are also said to be on the list, which is expected to be published tomorrow.
It will take some time before the levies actually come into effect. For example , a qualified majority of EU member states must approve the plan. This means that 55 percent of the member states must agree, and together they must also account for 65 percent of the European population.
Popular targetBoeing is a popular target in the global trade war. China has already ordered the national airline to stop buying new planes from Seattle, Bloomberg reported, citing insiders.
The tariffs are a very high-profile achievement of Trump in his first 100 days in the White House. Americans are not happy about it, says correspondent Erik Mouthaan.
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