The United States has said it will deny threatened tariffs on $ 7.5 billion ($ 5.75 billion) in European and British goods, which it has imposed as a penalty for subsidies to aircraft maker Airbus.
The move comes as the two sides fight to end their 1
The United States last year raised border taxes on more than 100 items, including jumpers, single-malt whiskey and cheese.
She said the EU had not done enough.
“The EU and member states have not taken the necessary action to comply with WTO rulings,” America’s best trade representative, Robert Leitheimer, said on Wednesday. “However, the United States is committed to a long-term solution to this dispute.
The European Union cautiously welcomes the US decision not to increase the number of goods subject to tariffs.
“The Commission recognizes the US decision not to exacerbate the ongoing aircraft dispute by raising tariffs on European products,” an EU spokesman said.
Last month, Airbus said it would change some of the deals responsible for the dispute, saying the changes, including rising interest rates on loans to France and Spain, removed “any justification” for US border taxes.
The move prompted European officials to call for an end to “unjustified” tariffs. Many American companies have also protested against tariffs that raise prices for American buyers.
On Wednesday, Airbus spokeswoman Clay McConnell said in a statement that the company “deeply regrets that despite recent European action to achieve full compliance, USTR [US Trade Representative] decided to maintain Airbus aircraft fares – especially at a time when aviation and other sectors are going through an unprecedented crisis. “
When did the tariffs start?
Last year, the United States announced tariffs on goods worth $ 7.5 billion after the World Trade Organization ruled that state aid granted to Airbus for the launch of its A380 and A350 aircraft was illegal and allowed the American rematch.
In February, the United States raised rates charged for aircraft from 10% to 15%, leaving the duty at 25% for other items unchanged.
This summer, US officials again threatened to raise tariffs or be subject to new installments.
Items threatened by new tariffs include salmon fillets, gin and olives.
The law is required by law to review tariffs periodically. On Wednesday, she announced small tweaks to the list, such as removing sweet biscuits made in the UK and adding jams from France and Germany.
Commercial lawyer Jamieson Greer, former head of US Trade Representative Robert Lighthouse, told the BBC: “The reality is that all of this can be resolved if Airbus takes some action to secure restitution.”
More tariffs ahead?
The European Union, which has filed a lawsuit challenging US subsidies to Boeing, has threatened to hit the United States with its own tariffs. It is waiting for the World Trade Organization to decide how big such a punishment can be.
The United States said in May it had eliminated the benefits dispute. This WTO decision is expected later this year.
“In the absence of an agreement, the EU will be ready to take full advantage of its own sanctions rights,” EU Trade Commissioner Phil Hogan said last month.
The issue also complicates trade talks between the United States and Britain.
UK Trade Secretary Liz Truss raised the issue in talks with Mr Lighthizer this month, as the two sides held a third round of talks.
The secretary “was adamant that the United Kingdom considered these tariffs unacceptable and continued to insist on their immediate abolition,” the Ministry of International Trade said.