EU said it could hit with tariffs an 11-page list of U.S. imports worth $20 billion in a transatlantic aircraft subsidy dispute.
The USA and the EU have been battling for almost 15 years at the WTO over subsidies given to U.S. planemaker Boeing and its European rival Airbus. After partial victories for both sides, each is asking a WTO arbitrator to determine the level of countermeasures they can impose.
The Trump administration last week proposed targeting a seven-page list of EU products for tariffs. Such tariffs ranged from large aircraft to dairy products, to counteract the harm from EU subsidies of an estimated $11 billion worth.
Brussels has responded with its own list of some $20 billion worth of U.S. imports. The list included agricultural produce from dried fruit to ketchup, planes, fish, tobacco, handbags, suitcases, tractors, helicopters, video game consoles. The published list will now be open to consultation until May 31 and could then be revised.
In both cases, WTO arbitrators have yet to set an amount. However, the U.S. case against Airbus is more advanced, with a ruling possible in June or July. The EU case against Boeing could come early in 2020.Both sides have said they would prefer a settlement that did not lead to the imposition of tariffs.
The European Union has meanwhile declared itself ready to start formal trade talks with the United States.
START TRADINGForex – $20 billion EU tariff list over Boeing
Investors are closely watching Chinese and European economic data for signals that global growth is recovering. Data on Wednesday also showed that the U.S. trade deficit fell to an eight-month low in February as exports to China surged.
Investment inflows into Europe have been improving, which may give the euro a boost against the greenback. The U.S. dollar is also heading into a period of the year when it has traditionally weakened.
The dollar weakened on Wednesday as better-than-expected economic data in China bolstered risk appetite and boosted the Australian dollar. The dollar index against a basket of six major currencies dipped 0.2% to 96.906.
The euro rose 0.4% to $1.1324, paring the previous day’s losses.
The Australian dollar outperformed on the Chinese data. The currency is sensitive to the economic fortunes of China, Australia’s biggest trading partner. The aussie rose to a two-month high.
The New Zealand dollar, meanwhile, fell 0.3% after data showed that annual inflation slowed in the first quarter.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money