WASHINGTON – United States President Joe Biden’s administration yesterday said it will maintain punitive tariffs on some European imports as part the long-running trade dispute between Boeing and Airbus.
In a notice due to be published in the Federal Register today, the US Trade Representative (USTR) said “it is unnecessary at this time to revise” the levies.
Since coming to power last month, Biden has suggested that he will not modify the latest tariffs enacted by his predecessor, Donald Trump. These took effect on January 12.
But, the president has said he wants to restore good ties with traditional US allies, including the countries of the European Union, after they came under severe strain with Trump’s “America First” approach to trade and foreign policy.
The US and EU have, since 2004, been squabbling over alleged unfair trade practices, with both sides claiming the other provided support to private companies, such as aircraft manufacturers Boeing and Airbus, in violation of international trade agreements.
Both sides have won rulings from the World Trade Organisation (WTO) that permit punitive tariffs.
In December, USTR announced new tariffs on aircraft parts, wine, cognac and brandies from France and Germany, adding to a long list of products from EU countries that have been subjected to 25% duties since 2019.
After a WTO ruling in October, the EU the following month levied additional customs duties on US$4 billion (RM16.17 billion) worth of American products, including Boeing planes and also farm produce, such as wheat and tobacco, plus strong alcohol and chocolate.
The notice released here yesterday said: “USTR will continue to consider the action taken in this investigation.”
In a phone call on January 24, French President Emmanuel Macron suggested to Biden that they broker a settlement to the trade dispute, reported CNBC.
It said the Biden administration is non-committal on the idea. – AFP, February 12, 2021
