In the aftermath of today's surprising WTO decision, in which the global trade mediator sided with the US in finding some $7.5BN in European Airbus subsidies illegal, moments ago the US Trade Rep confirmed that the US will waste no time in retaliating to what - for years - were illegal trade practices.
According to the USTR office, the US will impose a total of $7.5 billion in retaliatory tariffs on EU imports starting October 18, with 10% tariffs on large commercial aircraft, and 25% on agricultural and other industrial goods.
- U.S. WILL IMPOSE TARIFFS ON $7.5 BILLION OF EUROPEAN UNION IMPORTS BEGINNING OCT. 18, USTR SAYS
- U.S. WILL IMPOSE 10% TARIFFS ON LARGE COMMERCIAL AIRCRAFT AND 25% TARIFFS ON OTHER AGRICULTURAL AND INDUSTRIAL GOOD
In addition to single-malt tariffs on airplanes, Irish and Scotch whiskeys and wine, other items covered by the tariffs include:
- Edam, Gouda, Reggiano, Cheddar, Swiss, Stilton, Emmentaler and Pecorino cheese
- Pork sausages
- Prune juice
- Clams, Mussels, Cockles
- Sweet biscuits
- Tweezers, Pliers, Screwdrivers
And with that, instead of easing, the global trade war just sprung another major front, one which will see the EU retaliate in kind and impose tariffs on billions in US imports to the EU, guaranteeing that consumer prices in both the US and Europe will spike just as the world is entering a global recession, making further rate cuts by the Fed that much more complicated.
The full list of imports subject to tariffs is below (pdf link).