Valdis Dombrovskis, Executive Vice President of the European Commission for An Economy that Works for People.
BERND VON JUTRCZENKA | AFP | Getty Images
LONDON — The European Union will slap tariffs on up to $4 billion worth of U.S. products Monday, after what it described as a “lack of progress” on resolving a long-standing dispute over aircraft subsidies.
The EU and the U.S. have been at odds over the issue since 2006. The World Trade Organization agreed last year that the EU did not follow best trade practices when granting aid to Airbus. In light of that decision, the U.S. imposed duties on $7.5 billion of imported goods from Europe.
Last month, the WTO also ruled that the United States did not comply with international rules when providing subsidies to Boeing. As a result, the EU has said it is now going ahead with up to $4 billion in tariffs.
“We have made clear at every stage that we want to settle this long-running issue. Regrettably, in spite of our best efforts, due to the lack of progress from the U.S. side, we can confirm that the European Union will later today exercise our rights and impose the countermeasures awarded to us by the WTO in respect of Boeing,” Europe’s trade chief, Valdis Dombrovskis, said on Monday during a press conference.
This is a breaking news story and will be updated shortly.