Home Business Airbus says higher tariffs on EU planes will harm US airlines, consumers

Airbus says higher tariffs on EU planes will harm US airlines, consumers

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The White House on Friday raised tariffs on aircraft imported from the European Union, prompting Airbus to suggest there will be a knock-on effect that will hit US airlines already facing a shortage of planes.

The European planemaker also said that it would maintain communication with its US customers to “mitigate effects of tariffs insofar as possible” and hoped the Office of the US Trade Representative (USTR) would soften its stance. Airbus also said that it would be US citizens who end up bearing the brunt of the tariff increase.

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“USTR’s decision ignores the many submissions made by US airlines, highlighting the fact that they — and the US flying public — ultimately have to pay these tariffs,” the European multinational aerospace corporation said in a statement.

No end in sight to trade disputes

Earlier on Friday, Washington announced it would raise tariffs on aircraft imported from the EU to 15%, from the previous figure of 10%, ratcheting up pressure on the EU to resolve a dispute that has been ongoing for 16 years over support for airplane makers, and raising the stakes in broader talks to reach a US-EU trade deal. The new figure of 15% will take effect from March 18.

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The levy declaration from the White House came just days after President Donald Trump said it was time to talk “very seriously” about a trade deal with Brussels.

The US said it could reconsider the tariff hike if the EU imposed additional tariffs on US imports in connection with the aircraft subsidy disputes.

jsi/sms (Reuters, AFP)

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