EU threatens escalation in tariff fight over Boeing and Airbus subsidies – BBC
|The BBC relies on European Trade Commissioner Phil Hogan’s comments to the European Parliament's trade committee, published late-Monday, to signal the latest threat to global trade.
Key quotes
The EU says it will act ‘decisively’ if the US goes ahead with a threat to put new tariffs on its goods.
On Monday, Europe's trade commissioner Phil Hogan said Washington had rejected moves to settle the dispute.
‘I want to reassure people that we are ready to act decisively and strongly on the European Union side if we don't get the type of outcome that we expect from the United States in relationship to finalizing this 15-year-old dispute,’ he told the European Parliament's trade committee.
The World Trade Organization (WTO) has already ruled that subsidies given by the EU to Airbus in 2004 were illegal.
On Monday, Mr. Hogan also criticized recent national security investigations launched by the US against EU goods, suggesting they may also be a form of retaliation.
The investigations, known as 232 investigations, cover products from transformers and mobile cranes to steel nails.
Before last year's tariffs over Airbus, the Trump administration had imposed duties on EU steel and aluminum - spurring Brussels to tax iconic US products such as denim jeans and motorcycles.
Mr. Trump has also threatened duties on European cars, a particular concern to Germany.
FX implications
Given the news suggesting further hardships for global trade watchers, S&P 500 Futures catch a breather around 3,175 after Wall Street marked another upbeat performance. Even so, the EUR/USD pair recovered to 1.1315 following the announcement.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.