Updated at 12:41 p.m. ET
The Trump administration is preparing to slap tariffs on billions of dollars' worth of imports from Europe, in retaliation for what it calls unfair subsidies of Airbus jets. The would cover not only aircraft but also wine, cheese, woolen suits and other signature European products.
President Trump touted the proposed tariffs , arguing the European Union has "taken advantage of the U.S. on trade for many years."
The proposed levies represent the latest salvo in a between Airbus and its U.S. rival Boeing. Both sides have accused the other of benefiting from unfair government subsidies. The World Trade Organization has ruled in separate cases against both and .
The World Trade Organization finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put Tariffs on $11 Billion of EU products! The EU has taken advantage of the U.S. on trade for many years. It will soon stop!
— Donald J. Trump (@realDonaldTrump)
The Trump administration estimates that Airbus subsidies are costing U.S. companies $11 billion a year in lost market share. If the WTO approves that figure this summer, the administration will be ready to impose retaliatory tariffs immediately.
"This case has been in litigation for 14 years, and the time has come for action," U.S. Trade Representative Robert Lighthizer said .
The move comes as Boeing is under pressure. Its best-selling jet, the 737 Max, worldwide following two deadly crashes. As , the 737 Max was hastily developed in response to a competing jet from Airbus.
The Trump administration has already imposed tariffs from Europe and elsewhere and the president has threatened to impose tariffs on European cars.
Lighthizer says the ultimate goal is a trade agreement with Europe that would eliminate tariffs as well as unfair government subsidies.
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