WASHINGTON, Jan 12 ― The US government yesterday said it would begin collecting new duties on aircraft parts and other products from France and Germany from today after failing to resolve a 16-year dispute over aircraft subsidies with the European Union.
In a notice late yesterday, US Customs and Border Protection said the new duties would apply from 12.01am ET (0501 GMT) today as part of the long-running battle over government subsidies to Europe's Airbus SE and its US rival, Boeing Co.
The notice follows an announcement by the US Trade Representative's office that it would impose an additional 15 per cent tariff on aircraft parts, including fuselage and wing assemblies, and a 25 per cent duty on certain wines.
Talks between Washington and Brussels to end the battle stalled in the final weeks of the Trump administration, a European source familiar with the matter said. Washington had also pressed to reach a separate solution with Britain, which has a share in Airbus, but has exited the EU.
Brussels said it would seek swift resolution of the issue with US President-elect Joe Biden, who takes office on January 20. The Biden team had no immediate comment on the tariff issue.
Airbus said USTR's expansion of tariffs to include aircraft components made in France and Germany was “counterproductive” and would wind up harm US workers at its Mobile, Alabama site where it assembles A320 and A220 aircraft.
The measure will hit A320 production which relies on components from France and Germany, while the A220 production does not, according to an Airbus spokesman.
The initial impact may be muted since aerospace companies generally procure large components such as wings and fuselages well in advance to ensure smooth production flows.
Both Washington and Brussels have won cases at the World Trade Organisation, the former allowed to impose tariffs on US$7.5 billion (RM30.5 billion) of EU goods and the latter extra duties on US$4 billion of imports from the United States. ― Reuters
