WASHINGTON (Reuters) – The U.S. government on Friday said it would increase tariffs on aircraft imported from the European Union to 15% from 10%, ratcheting up pressure on Brussels in a nearly 16-year transatlantic dispute over aircraft subsidies. <\/p>\n
FILE PHOTO: The logo of Airbus is pictured at the aircraft builder’s headquarters of Airbus in Colomiers near Toulouse, France, November 15, 2019. REUTERS\/Regis Duvignau\/File Photo <\/span><\/p>\n<\/figcaption><\/div>\n<\/div>\n The U.S. Trade Representative\u2019s Office said it remained open to reaching a negotiated settlement with the EU on the issue, but could revise its actions if the EU imposed tariffs of its own in connection with a pair of disputes over the subsidies. <\/p>\n In a statement released late on Friday, USTR said it would make minor modifications to 25% tariffs imposed on cheese, wine and other non-aircraft products from the EU, including dropping prune juice from the list. It did not raise the tariff rates on those product, as it had suggested it might do in October. <\/p>\n The higher aircraft tariff will take effect March 18. <\/p>\n The U.S. action comes as U.S. President Donald Trump, emboldened by agreement on a Phase 1 trade deal with China, has trained his sights on restructuring the more than $1 trillion U.S.-EU trade relationship, raising the specter of another major trade war as the global economy slows. <\/p>\n EU officials have said they want to negotiate with Washington but will not be bullied into submission. <\/p>\n European planemaker Airbus (AIR.PA<\/span>) said the U.S. move would hit U.S. airlines already facing a shortage of aircraft and complicate efforts to reach a negotiated settlement with the European Union in the longstanding dispute. <\/p>\n Airbus said it would continue discussions with U.S. customers to \u201cmitigate effects of tariffs insofar as possible\u201d and hoped USTR would change its position, particularly given the threat of EU tariffs on U.S. products in its own case before the World Trade Organization. <\/p>\n \u201cUSTR\u2019s decision ignores the many submissions made by U.S. airlines, highlighting the fact that they \u2013 and the U.S. flying public \u2013 ultimately have to pay these tariffs,\u201d the company said in a statement. <\/p>\n EU officials had no immediate comment on Friday\u2019s news. <\/p>\n The USTR had announced in December that it could increase tariff rates up to 100% and subject additional EU products to tariffs, following a decision by the WTO that EU launch aid to Airbus continued to harm the U.S. aerospace industry. <\/p>\n The WTO in October had awarded Washington the right to impose tariffs on $7.5 billion of annual EU imports in its case against Airbus. Washington then slapped 10% tariffs on most European-made Airbus jets and 25% duties on products ranging from cheese to olives and single-malt whisky, from Oct. 18. <\/p>\n Boeing, in a statement, said it was working with U.S. federal and state officials to \u201cpromptly bring the United States into full compliance\u201d with WTO rulings. <\/p>\n \u201cThe EU and Airbus could end these tariffs by finally complying with their legal obligations, ending these illegal subsidies, and addressing their ongoing harm. We hope they will,\u201d the company said in a statement. <\/p>\n The Wine & Spirits Wholesalers of America (WSWA) said it remains strongly opposed to tariffs on European-origin wine and spirits, and urged U.S. and EU trade officials to negotiate an end to a trade dispute that was lowering revenues. <\/p>\n A study commissioned by the group estimated that the 25% tariffs implemented in October could result in the loss of nearly 36,000 jobs in the beverage alcohol industry. <\/p>\n The Distilled Spirits Council of the United States said tit-for-tat tariffs on alcoholic beverages were hurting companies and consumers on both sides of the Atlantic. <\/p>\n It said new U.S. government data showed the U.S. spirit industry\u2019s exports to the EU, its largest export market, fell 27% in 2019 from a year earlier, and global exports of American whiskey declined 16% in the same period. <\/p>\n \u201cWe urge both sides to resolve these disputes so that consumers can enjoy #ToastsNotTariffs,\u201d the group said. <\/p>\n