• USTR's office imposes tariffs on aircraft-related parts and wines from France and Germany

Market news

31 December 2020

USTR's office imposes tariffs on aircraft-related parts and wines from France and Germany

Office of the United States Trade Representative (USTR) announced on Wednesday it would raise tariffs on certain products imported from the European Union (EU), including "aircraft manufacturing parts from France and Germany, certain non-sparkling wine from France and Germany, and certain cognac and other grape brandies from France and Germany".

In its statement, USTR said it was amending some of its tariffs because the EU had unfairly calculated tariffs against the U.S. allowed by a September World Trade Organization's (WTO) ruling in Large Civil Aircraft litigation. "As a result, to keep the two actions proportionate to each other, the U.S. is forced to change its reference period to the same period used by the European Union", the USTR added.  "However, in order to not escalate the situation, the United States is adjusting the product coverage by less than the full amount that would be justified utilizing the EU’s chosen time period. "

In a notice in the Federal Register, the USTR specified that "the annual trade value of the tariff subheadings subject to additional duties under the revised action remains at approximately $7.5 billion, which is consistent with the WTO Arbitrator’s finding on the appropriate level of countermeasures in the United States’ dispute against the EU involving large civil aircraft".

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