Trump warns of backlash if the EU levies around $4 billion in tariffs after WTO ruling

Getty

  • President Donald Trump told reporters Thursday the US will “strike much harder” if the EU imposes around $4 billion in tariffs on US goods. 
  • The World Trade Organization ruled Tuesday the EU has the right to impose tariffs on around $4 billion worth of US goods. 
  • The WTO’s decision is part of a 16-year old dispute over subsidies granted to Boeing. 
  • The EU said this week it may not impose the tariffs yet, as it prefers to negotiate with the US. 
  • Visit Business Insider’s homepage for more stories.

President Donald Trump on Thursday told reporters he will “strike much harder” if the European Union impose tariffs on US goods after winning a World Trade Organization ruling earlier this week.

“If they strike back, then we’ll strike much harder than they’ll strike. They don’t want to do anything, I can tell you that,” Trump told reporters before boarding the Marine One helicopter ahead of more campaign rallies.

The WTO’s decision on Tuesday is part of a trade dispute that has lasted nearly 16 years. The EU had long claimed government subsidies for US aircraft manufacturer Boeing  were unfair. 

Read more: Lori Keith’s mutual fund has grown 98,000% in 12 years by focusing on unflashy companies. She told us about 7 such stocks that thrived in the recession – and will likely do even better in the recovery.

This week’s WTO allows the EU to respond to tariffs imposed by Washington after a similar ruling last October under which the US won the right charge duties on $7.5 billion of EU goods, which affected aircraft parts and luxury goods based on its objections over European government support for rival aerospace group Airbus. 

Read more: 200-plus money managers pay thousands to see which stocks are on Jim Osman’s buy list. He details 2 he sees doubling and says one has at least 50% left to soar.

Trade tensions between the EU and US have deteriorated in the past few years, partly down to Airbus and Boeing, the world’s two largest plane makers, accusing the other of unfairly receiving billions of dollars in government subsidies.

Tuesday’s WTO ruling doesn’t necessarily mean the EU will definitely go ahead with the tariffs. The EU Chair of the Committee on International Trade Bernd Lange, reiterated this week after the decision he prefers a negotiated settlement on civil aircraft financial support. 

But he warned in the absence of “constructive” US engagement even after the elections, the EU will go ahead with the tariffs.

Source: Read Full Article