US set to hit EU with $7.5b Airbus sanction

Bloomberg

The World Trade Organization on on Monday formally authorised the US to impose tariffs on about $7.5 billion worth of European exports annually in retaliation for illegal government aid to Airbus.
Members approved this month’s arbitration award — the largest in the trade organisation’s history — at a special meeting of the dispute settlement body at the WTO’s headquarters in Geneva. The development marks the final procedural hurdle before the US can retaliate against European goods, which it plans to do on October 18.
The EU made a last-ditch appeal to the US to thwart the tariffs, seeking a negotiated settlement that would avoid the economic harm a tit-for-tat escalation would cause both parties. European Trade Commissioner Cecilia Malmstrom told her US counterpart, Robert Lighthizer, that his tariff plan would compel the EU to apply countermeasures in a parallel lawsuit over aid the US provided to Boeing Co.
“I strongly believe that imposing additional tariffs in the two aircraft cases is not a solution,” Malmstrom said in a letter to Lighthizer seen by Bloomberg News. “It would only inflict damage on businesses and put at risk jobs on both sides of the Atlantic, harm global trade and the broader aviation industry at a sensitive time.”
US Ambassador to the WTO Dennis Shea said at Monday’s meeting in Geneva that the Trump administration’s preference is to “find a negotiated outcome with the EU that ends all WTO-inconsistent subsidies,” according to a copy of his remarks obtained by Bloomberg. Malmstrom said last month that the EU had reached out to the US with a “detailed proposal,” but that the US wasn’t willing to negotiate.
The EU said that it would be “short-sighted” for the US to impose retaliatory tariffs on European goods and urged the US to find a “fair and balanced solution” to the dispute, according to a statement delivered by Paolo Garzotti, the EU’s deputy head of delegation to the WTO.