The US is maintaining the 15% tariff on Airbus aircraft.

The U.S. government said Wednesday that it will maintain tariffs of 15% on Airbus aircraft and 25% on other European products, despite European Union measures to resolve a long-standing dispute over subsidies.

Trade representative Robert Lighthizer said the bloc had not taken the necessary steps to comply with World Trade Organization decisions and that Washington would begin a new process to try to reach a long-term solution.

Airbus said it “deeply regrets” the U.S. decision to maintain tariffs. Last month, the company said it would increase loan repayments to France and Spain in a “final” attempt to reverse the tariffs and resolve a 16-year dispute over billions of dollars in airline subsidies.

The market expects an escalation of the dispute in the fall, when the EU is expected to get WTO approval to counteract with its own tariffs on subsidies for Boeing.

In October 2019, Washington imposed 25% tariffs on some EU food, wine and spirits in retaliation for the block’s subsidies to large aircraft. The United States initially imposed 10% tariffs on Airbus aircraft, but raised them to 15% in March.

By Reuters
(Information from Andrea Shalal, David Lawder, David Shepardson and Eric M. Johnson)