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US Announces New Tariffs on EU Imports Over Aircraft Subsidies Issue

On Wednesday, the US announced its decision to hike tariffs on some EU imports, such as aircraft parts as well as French and German wines. The announcement comes as part of the ongoing dispute between the two economies over the issue of aircraft subsidies.

The office of the US Trade Representative stated that its decision to impose these new tariffs was driven by an unfair calculation of tariffs by the EU on US goods and was permitted as part of the WTO ruling.

According to the official statement by the USTR, “In September, 2020 the EU was authorized to impose tariffs affecting $4 billion in U.S. trade as a result of related WTO litigation. In implementing its tariffs, however, the EU used trade data from a period in which trade volumes had been drastically reduced due to the horrific effects on the global economy from the COVID-19 virus.”

In response, the US’s latest actions serve to adjust tariffs on some imports from the EU by changing its reference period to match that used by the EU. However, the US maintains that its adjustment will be less than the full amount – a move taken to prevent escalation of trade tensions with the EU during the ongoing coronavirus crisis.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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