October 1, 2020 — The transatlantic trade conflict isn’t showing signs of winding down any time soon, and a ruling from the World Trade Organization means that a fresh round of retaliatory tariffs could jeopardize the nascent economic recoveries in both the U.S. and the European Union.
The WTO gave the EU authorization to impose tariffs on $4 billion of U.S. exports over illegal government aid provided to Boeing Co., according to two people familiar with the decision. The EU previously said it would act on the levies immediately to counteract $7.5 billion of tariffs Washington placed on European goods in a separate case involving Toulouse, France-based Airbus SE.
The judgment comes at a delicate moment, with the U.S. presidential election just over a month away and as the U.S. and the EU struggle to recover from coronavirus-induced recessions. The EU tariffs will target coal producers, farmers and fisheries, in addition to aircraft makers, all politically important industries for President Donald Trump and his Republican allies in Congress.