- The US is threatening to expand tariffs on Europe as part of a long-running dispute over aircraft subsidies.
- The move raised tensions with a major trade partner just days after the Trump administration reached a temporary ceasefire with China.
- President Donald Trump and European Commission President Jean-Claude Juncker have been locked in a separate trade dispute for more than a year, but progress toward a lasting agreement has proven challenging.
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The US is threatening to expand tariffs on Europe as part of a long-running dispute over aircraft subsidies, raising tensions with a major trade partner just days after reaching a temporary ceasefire with China.
The US Trade Representative said in a statement late Monday it would consider targeting $4 billion worth of additional products from the European Union, including cheese, pasta, coffee, whiskey and chemicals. That would be in addition to $21 billion worth of EU imports threatened with tariffs in April.
The move marks the latest move by the US to retaliate against EU aircraft subsidies. The two sides have been in a standoff over EU-based Airbus and US-based Caterpillar for nearly a decade, with each country claiming that the aircraft companies are illicitly aided by government funds.
"This only adds to the trade tensions but in reality does not change anything," said Justin Dubon, a spokesman for Airbus. "That is not creating a healthy environment for working towards a negotiated solution and risks a wide variety of industries on both sides of the Atlantic to arrive in a lose lose situation."
Boeing did not immediately responded to an email requesting comment.
The proposed tariffs are subject to arbitration at the World Trade Organization, which is tasked with determining the value of US countermeasures. The USTR said a public comment period on the tariffs is scheduled for August 5.
President Donald Trump and European Commission President Jean-Claude Juncker have been locked in a separate trade dispute for more than a year, but progress toward a lasting agreement has proven challenging.
"The EU remains open for discussions with the US, provided these are without preconditions and aim at a fair outcome," a spokesman for the EU executive said of the aircraft conflict on Tuesday, according to Reuters.
The escalation comes days after the US and China reached a temporary trade truce at the G20 summit in Japan, agreeing on Saturday to restart negotiations and delaying a major escalation in the yearlong tariff dispute between the largest economies.
The agreement, which delayed $300 billion worth of duties that Trump had proposed, sent financial markets to record highs on Monday. Following the USTR announcement, US stocks drifted lower early Tuesday.
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