WTO said the US can levy tariffs on $7.5 billion of exports from the European union as a result of the decision today
The US has requested an emergency mid-October meeting of the WTO dispute body. The speculation is that it signals fast tariffs on EU goods.
Today the WTO said that the US is entitled to levy tariffs on $7.5 billion of exports from the EU as a result of subsidies paid to Airbus. The award was the biggest arbitration award ever issued by the trade regulator. The subsidies helped Airbus over Boeing.
Having said that, the WTO will rule on a separate case against US subsidies to Boeing, which were also it deemed illegal. The fine decision will be made in the 1st half of next year.
So there is a chance for tit for tat fines imposed on the EU and the US.
The US response today seems to suggest they will impose the tariffs now vs. waiting for the other shoe to drop, or reach some negotiated settlement.
