The U.S. Trade Representative proposed tariffs on a list of European Union products, which includes large commercial aircraft and parts.
The USTR said on Monday the tariff is a counter measure against $11.2 billion worth of subsidy received by aircraft maker Airbus, that World Trade Organization has repeatedly found “adverse effects” to the United States.
The USTR’s preliminary list extends to 14 pages and contains a number of products in the civil aviation sector, including Airbus aircraft.
The dispute between Boeing and Airbus has been going on for more than 14 years, in which WTO ruled in March 2012 that billions of dollars of subsidies to Boeing were illegal and notified the United States to end them. But a few months later, the European Union filed a new complaint, alleging Washington was not complying with that order.
“Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional U.S. duties imposed in response can be lifted,” U.S. Trade Representative Robert Lighthizer said in the statement.