US sanctions against Europe come into force

The ax fell. Since this Friday, 00:01 Washington time (06:01 French time), the United States impose $ 7.5 billion of additional customs duties on a range of goods from the old continent. These tariffs concern airplanes, French wines, Italian cheeses or Scottish whiskeys. Enhanced taxation, decided with the blessing of the World Trade Organization (WTO).

The case dates back to early October. On the 2 nd, the WTO made its conclusions on the conflict that has pitted the United States against the European Union for fourteen years. The organization believed that some member countries, particularly Germany, the United Kingdom, Spain and France, had awarded subsidies to the European aircraft manufacturer Airbus, distorting competition with the US Boeing. As a penalty, the WTO allowed Washington to impose tariffs weighed on European goods imported across the Atlantic. These products represent a value equivalent to the harmful effects caused by European subsidies for Boeing or 7.496 billion dollars (6.8 billion euros) per year. A historically high amount never reached so far by a WTO ruling, but still below what the US government hoped for – 10.56 billion.

A few hours later, US Trade Representative Robert Lighthizer welcomed the WTO decision. "Tariffs will apply to a range of imports"And in particular to products coming "France, Germany, Spain and the United Kingdom (…) The fee increases will be limited to 10% of large civil aircraft and to 25% on agricultural and other products" goods, explained the US official. Bob Lighthizer also stated that his services "Will continually re-evaluate these taxes on the basis of (their) discussions with the EU".

The EU stands ready to respond

Since then, many voices have been raised asking Americans to give up their plans. The CEO of Airbus, William Faury, called for dialogue, as well as representatives of the French, British or Spanish. The European Union remained on guard, underlining its desire to "Find a fair settlement"while warning that any increase in US taxes would lead to a parallel response from the old continent. Same story at 10, Downing Street: Boris Johnson said to himself "disappointed" the US decision to apply sanctions, and asked his American counterpart to abandon it.

While traveling to Washington on Friday for the annual meetings of the International Monetary Fund (IMF) and the World Bank, the French Minister of the Economy, Bruno Le Maire, had planned to meet Robert Lighthizer. "I repeat to him that an agreement on the Airbus and Boeing case is the best solution", The French minister indicated Thursday. He said the US sanctions "Will have negative consequences, politically and economically".

The European Union will be able to trigger its possible customs sanctions only after the green light of the WTO, next spring. At that time, the World Trade Organization will make its decision on the subsidies, considered illegal, that benefited Boeing. But Bruno Le Maire wonders: "Is it the interest of the United States to have a trade war with Europe when there is already a trade war with China?".

Discussions were underway with the US authorities to cancel the application of these sanctions. In vain. The EU Trade Commissioner Cecilia MalmstrOm had however sent a letter to Robert Lighthizer, reminding him that if the United States have the right to impose sanctions, "This does not mean they can do it".

On Wednesday, Donald Trump cast doubt over a press conference held with Italian President Sergio Mattarella. "I could solve the problem instantly, but it would be too virulent. This would involve customs duties on European products entering (the USA), and for the moment we will try to do without it "he had said. But the occupant of the oval office finally preferred to take action.