In yet another blow to Trump’s declared trade war on the world, the World Trade Organization has approved a plan for the European Union to impose tariffs on $4 billion of US goods to counter federal subsidies to aircraft manufacturer Boeing, Reuters reports.
Last year, the Trump Administration imposed tariffs on $7.5 billion in goods coming into the US from EU countries in retaliation for subsidies for Airbus, which operates out of the United Kingdom, France, Germany and Spain.
Acting unilaterally, the state of Washington repealed tax breaks for Boeing, which is headquartered in Seattle. In exchange, Airbus announced it would increase loan payments to France and Spain for the A350 aircraft.
The Trump Administration, however, refused to lift tariffs to alleviate the trade tension despite the EU’s desire to settle the issue through negotiations.
The EU tariffs will be applied to US imports such as planes, wine, spirits, suitcases, tractors, frozen fish and produce from dried onions to cherries.
There is no word if the Trump Administration will provide subsidies to impacted industries, as Trump has done to other markets that have incurred losses due to his trade policies.