The United States has announced that the import tax on European aircraft will rise. From March 18, the tax increases from 10 to 15 percent. This makes aircraft from the European aircraft manufacturer Airbus more expensive in the US.
With the higher levy, the Americans want to hit the European aviation industry, but Airbus says that especially the American airlines will suffer from it. They suffer from a shortage of equipment and will therefore have to pay more when they order aircraft from Airbus.
Cheese, olives and whiskey
The US and Europe have been arguing for years about subsidies to aircraft builders Airbus and Boeing. Since 2004, the economic superpowers have accused each other of giving unauthorized state aid to their ‘own’ manufacturer. They brought various cases to the WTO, the World Trade Organization.
Both parties have been upheld in parts over the years, but because they were always appealing, the trade war continued.
Last year, the WTO ruled in one case that the US is entitled to compensation. The Americans are therefore allowed to levy import duties on 7.5 billion dollars worth of European imported goods, not just airplanes. This led to a 10 percent levy on Airbus aircraft and 25 percent on other products, including cheese, olives and whiskey.
Legal battle
The EU then said that the unlawful subsidies for Airbus had been stopped, but the WTO ruled in December that this was incorrect. This is now a reason for the Americans to increase the import levy on aircraft.
In the meantime, the legal battle is continuing. Later this year, the WTO will rule on the case that the EU has brought about US state aid for Boeing.
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