EDITOR NOTE: The trade war has been a topic out of focus since the COVID-19 meltdown. But that doesn’t mean that it isn’t over. According to the latest news, billions of dollars in tariffs may be hitting the European Union this summer. Turns out, the WTO caught them cheating a bit, specifically the UK, France, Germany, and Spain. Oops. And now, a $3.1 billion slap.
The United States is studying the possibility of slapping $3.1 billion in additional tariffs on goods from the United Kingdom, France, Germany and Spain — in another step that’s likely to exacerbate tensions between both sides of the Atlantic.
In a document issued Tuesday evening, the Office of the United States Trade Representative said it is considering an “additional list” of products from France, Germany, Spain and the U.K. to be placed with duties of up to 100%, according to Bloomberg.
The goods include olives, coffee, chocolate, beer, gin, some trucks and machinery.
The potential enforcement of the new tariffs is open to public comment through July 26. The move is part of a wider reaction from the United States in relation to a long-standing dispute with the European Union over subsidies to large civil aircraft manufacturers.
The World Trade Organization ruled in October that Germany, France, Spain and the U.K. granted illegal subsidies to planemaker Airbus and allowed the U.S. to impose $7.5 billion in duties as a result. In addition, the WTO ruled in December that the EU had not ended these illegal subsidies, giving the U.S. further room to impose new levies on European products.
The European Commission and the U.K. government were not immediately available for comment when contacted by CNBC on Wednesday.
Originally posted on CNBC