- Title: U.S. widens trade war with tariffs on European planes, cheese, whisky
- Date: 3rd October 2019
- Summary: WASHINGTON, D.C., UNITED STATES (FILE - JULY 24, 2017) (REUTERS) ***WARNING: CONTAINS FLASH PHOTOGRAPHY*** MAN WALKING INTO OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE SIGN READING (English): "OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE" SAINTE-CROIX-DU-MONT, FRANCE (FILE - JULY 29, 2019) (REUTERS) VARIOUS OF BOTTLE OF FRENCH WINE BEING UNCORKED WINE BEING POURED INTO GLASS BOTTLES OF BORDEAUX WINE LOS ANGELES, CALIFORNIA, UNITED STATES (FILE - MAY 13, 2014) (REUTERS) VARIOUS OF WINE BOTTLES ON SHELVES IN LOS ANGELES FORRES, MORAY, SCOTLAND, UNITED KINGDOM (FILE - MAY 2017) (REUTERS) VARIOUS OF WHISKY BARRELS EDINBURGH, SCOTLAND, UNITED KINGDOM (FILE - FEBRUARY 15, 2018) (REUTERS) WHISKY DISPLAYED ON WALL BOTTLE OF BENROMACH WHISKY BROXBURN, SCOTLAND, UNITED KINGDOM (FILE - FEBRUARY 15, 2018) (REUTERS) VARIOUS OF BOTTLES BEING FILLED WITH WHISKY VARIOUS OF BOTTLES ON PRODUCTION LINE BEING PACKED INTO BOXES FILLED WHISKY BOTTLES BURGDORF, SWITZERLAND (FILE - MARCH 13, 2019) (REUTERS) VARIOUS OF CHEESES ON TABLES PEOPLE TASTING CHEESES IN CELLAR GIANT CHEESE BEING CUT / MAN HOLDING BIG SLICE OF CHEESE / CHEESE BEING APPLAUDED CHEESE BEING CUT INTO SMALL PIECES LAKE GANZIRRI, SICILY, ITALY (FILE - JULY 9, 2017) (REUTERS) MAN SEATED AT TABLE SORTING CLAMS VARIOUS OF MAN'S HANDS SORTING CLAMS VARIOUS OF YOUNG WOMAN SORTING CLAMS CLAMS IN BASKET CLAMS IN PAN ON STOVE / FLOUR BEING ADDED AND CLAMS STIRRED 'SPAGHETTI ALLE VONGOLE' ON PLATE LONDON, ENGLAND, UNITED KINGDOM (FILE - OCTOBER 5, 2015) (REUTERS) VARIOUS OF SHEEP BEING RELEASED INTO PEN SHEEP IN PEN TAILOR'S SHOP (DEGE & SKINNER) / SHEEP IN PEN SAVILE ROW SIGN SHEEP HUNTSMAN SHOP MODEL OF SHEEP IN WINDOW
- Embargoed: 17th October 2019 11:44
- Keywords: U.S. trade war world trade organisation europe whisky wine cheese wool food goods
- Location: SEE SCRIPT BODY FOR LOCATIONS
- City: SEE SCRIPT BODY FOR LOCATIONS
- Country: Various
- Topics: Economic Events,Editors' Choice
- Reuters ID: LVA001AZJKQ4N
- Aspect Ratio: 16:9
- Story Text:The United States on Wednesday (October 2) said it would slap 10% tariffs on European-made Airbus planes and 25% duties on French wine, Scotch and Irish whiskies, and cheese from across the continent as punishment for illegal EU aircraft subsidies.
The announcement came after the World Trade Organization (WTO) gave Washington a green light to impose tariffs on $7.5 billion worth of EU goods annually in the long-running case, a move that threatens to ignite a tit-for-tat transatlantic trade war.
The measures would follow tariffs levied by the United States and China on hundreds of billions of dollars of each other's goods in their more than year-old trade war.
The tariffs heavily target the four Airbus consortium countries, including Spanish olives, British sweaters and woollens, and German tools and coffee, as well as British whisky and French wine. Cheese from nearly every EU country will be hit with the 25% tariffs, but Italian wine and olive oil were spared, along with European chocolate.
Shares in European luxury goods, including British fashion brand Burberry, and drinks companies, such as France's Remy Cointreau, rose on Thursday, after the tariffs excluded cognac, champagne and leather goods.
The size and scope of the tariffs were reduced considerably from a $25 billion list floated by Washington this year that included helicopters, major aircraft components, seafood, luxury goods and other categories excluded from Wednesday's announcement.
One person familiar with the case said the U.S. Trade Representative (USTR) was deliberately not using the full extent of WTO-approved retaliation to coax the European Union into negotiations.
Airbus and U.S. firm Boeing, the world's two largest planemakers, have waged a war of attrition over subsidies at the WTO since 2004, in a dispute that has tested the trade policeman's influence and is expected to set the tone for competition from would-be rivals from China.
(Production: Dina Selim) - Copyright Holder: FILE REUTERS (CAN SELL)
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