Tariffs: US taxes $ 7.5 billion on European countries

Since 6 pm (French time) this Friday, the United States can tax more planes, cheese, olive oil, French wines, Scottish whiskeys … A few days ago, the World Trade Organization ( WTO) gave the final green light to Washington to impose sanctions against the European Union.

In total these measures represent 7.5 billion dollars of taxes for European countries. What to hurt several exporting sectors such as French wine with a 25% tax.

As Boeing encounters serious problems with its 737 MAX aircraft, grounded, Airbus aircraft, manufactured primarily in factories in the UK, France, Spain and Germany will now cost 10% moreover when they are imported to the United States.

On Wednesday, Donald Trump said Europeans were penalizing US companies by setting "huge barriers" to limit imports.

After the trade war between China and the United States, these new transatlantic trade tensions may further destabilize the global economy, which is already showing signs of slowing down.

A European response?

Bruno Le Maire, the Minister of the Economy warned Thursday that the tariffs strengthened would have "negative consequences both from the economic point of view of politics". And to warn that the EU was "ready to fight back".

The European Commissioner, Pierre Moscovici and the Spanish Minister of the Economy announced Thursday in Washington their hope for a last-minute flip-flop of the Trump administration.

"I continue to hope that between the United States and Europe, who are friends and partners, we can avoid sanctions," said Pierre Moscovici on the sidelines of the annual meetings of the IMF and the World Bank. Washington. "I have always thought that trade divergences, a trade war, trade tensions" were an obstacle to growth, he added, recalling that the IMF had revised downward its forecasts for the world economy on Tuesday. for this reason.

A meeting between Bruno Le Maire and Robert Lighthizer, the US Trade Representative (USTR) and chief negotiator for the United States is scheduled for Friday in Washington.

Europeans argue for a negotiation. Especially since they will most likely be authorized by the WTO next year to impose customs sanctions against the United States to punish them … for having subsidized Boeing.

But the fear of the Europeans is to see the US president persist and sign. It could then decide to impose in mid-November new higher tariffs on European cars.

Still, it would not be the first time that Donald Trump's threats on customs sanctions are not implemented.

The US leader had already imposed higher tariffs on steel and aluminum from the EU and other allied countries. But in July 2018, a truce was concluded between Donald Trump and Jean-Claude Juncker, the president of the European Commission. This truce was to give rise to negotiations. But so far, the situation has remained on a status quo.