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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n