The European Union (EU) expects US President Donald Trump to receive the green light from the World Trade Organization WTO to raise import tariffs on European goods. This includes dairy and meat products such as cheese, butter and pork.
The stake in the impending trade conflict is the aircraft subsidies that the European Union has given to Airbus. According to the United States, which has Airbus's largest competitor with Boeing, these are illegal and have caused €11 billion in damage to the American economy. The WTO will decide this summer whether the US claim is justified, after which Trump can introduce tariffs on products valued between $5 and $7 billion.
Two EU officials expect the US president to get the green light from the WTO to implement these tariffs, they report to Bloomberg news agency. This means that products such as Edam and Gouda cheese, frozen ham and pork, fermented milk, milk fat and oil, Italian types of cheese and pork parts such as shoulders will become more expensive for American buyers.
By including many agricultural products on the list, Trump hopes to force the EU to make concessions about better allowing American agricultural products on the European market. However, the EU has already prepared a retaliation package with a list of US products, from ketchup to video game consoles, worth a total of $12 billion.
The European Union is leaving the door open for talks with the US in this dispute, although Cecilia Malmström, the European Commissioner for Trade, fears that the tariffs will be introduced back and forth.
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