Industry News

Tariffs of 10-25% to be Imposed on $7.5 Billion in EU Imports Starting October 18th

Staff | M.E. Dey & Co.

The U.S. won a fifteen-year running case at the World Trade Organization (WTO) over damages incurred by EU subsidies paid to Airbus by the governments of Germany, France, Spain and the United Kingdom. The U.S. was originally seeking authorization from the WTO to impose 100% tariffs on imports of $11 Billion of EU goods. However, the WTO arbitrator calculated that the U.S. has been harmed by $7.5 Billion annually by the EU subsidies to Airbus.

Although the WTO ruling allows the U.S. to hit the EU with up to 100% tariffs on $7.5 Billion in EU goods annually, the U.S. Trade Representative (USTR), on October 2, 2019, announced tariffs of 10% and 25% on list of 160 goods imported from the EU with an effect on October 18, 2019.

The USTR published a list of products that will be subject to the additional 10 and 25% tariffs. The list includes 15 sections with specifically noted 8-digit HTS codes and the applicable tariff rate. Unless specifically stated, the product descriptions provided in the list are for informational purposes only, and do not limit the scope of the additional duties. Although the case before the WTO is based on aircraft subsidies, consumer goods make up a substantial portion of the list and are at the higher 25% tariff.

Additional tariffs of 10%  – Assessed on certain passenger and cargo aircraft from France, Germany, Spain or the United Kingdom.

Additional duties of 25%  – Assessed on a wide range of products from the various EU member countries. The fifteen sections of the list break out the specific products and country.

  • Heavy self-propelled machinery and mechanical and handheld tools and machinery
  • Beverages including wine, liqueurs, Irish and scotch whisky, coffee, and juices
  • Foods including cheese, yogurt, olives, nuts and oils, fruits, and certain meats
  • Certain garments, blankets and linen

The EU also has a case with the WTO against the U.S. for subsidies provided to Boeing. The WTO also ruled in favor of the EU in their case. The WTO will finalize the actions that the EU may take against the U.S. in early 2020.