Government of United States announced on Wednesday that they would retain tariff of 15% on Airbus aircraft and 25% tariff on European goods. Despite making efforts to resolve the 16-year-old case on aircraft subsidy with European Union, they directly announced the retention.
It imposed a 10% tax on Airbus initially but lifted the rate to 15% in March.
In response, Airbus replied that it “deeply regrets” this decision of unchanged tariff on its aircraft and believe that Europe will take appropriate measures to defend these interest rates imposed on them and other European firms and sectors.
USTR imposed tariffs of 25% on European food array in October 2019 in vengeance to the European grants on large aircraft. This array included spirits, Italian cheese, wine and single-malt Scotch whisky.
Washington’s decision to abstain from increasing the rate on tariff would create more problems between two economically powerful countries. So, the call of time is to resolve the trade conflicts as soon as possible, said an official of the European Union.
Robert Lighthizer representative of United State Trade said that they would revive the list of $7.5 billion affected European goods. In this, they would make small change by removing certain products from Britain and Greece and adding on equivalent products from France and Germany.
It ignored call request from U.S lawmakers and officials of the EU to cut down tariff amount on products like spirits, food and wine but because of threatening did not add taxes to beer, gin and vodka.