EU in talks to delay US tariffs until after election

The EU is delaying efforts to push tariffs on the US aerospace industry and attempting to prioritise settlement discussions in the ongoing Boeing-Airbus dispute.

EU sources say the bloc is considering not levying tariffs against the US until after the presidential election, which takes place on November 3.

A few weeks ago, the US showed that negotiations were possible when it suggested an ending to the conflict by offering to drop its tariffs on EU businesses if Airbus repaid loans given to the governments of EU member states.

The World Trade Organisation (WTO) approved $4 billion (€3.4 billion) worth of tariffs on US goods in retaliation for illegal state aid given to Boeing.

The tariffs were first imposed by the US on the EU back in October, imposing a 10% levy on Airbus planes and a 25% duty on other products such as Scottish whiskey, French wine and cheeses from across Europe.

As the new year rolled around and the dispute grew more heated, the US threatened extra duties on EU goods, but nothing appears to have come of this.

The feud has been ongoing for 16 years with no end in sight.

Valdis Dombrovskis, the EU's trade commissioner, has revealed the preference to usher talks with Washington would overtake any punitive measures.

He said: “In the absence of a negotiated outcome, the EU will be ready to take action in line with the WTO ruling. As I have made clear all along, our preferred outcome is a negotiated settlement with the US.” 

The EC has compiled a full list of businesses and resources that could be hit with tariffs if an agreement is not met.

Aside from the aerospace industry, it also includes levies on farming equipment such as tractors, diggers and numerous US-sourced foodstuffs.

According to another source, there has been internal debate about how best to proceed in dealing with the dispute, especially given that so little time remains before the election.

The EU has maintained that it is ready to use its "retaliation rights" if no prospects of resolution for the conflict is in sight.

US ambassadors to the EU are due to discuss the matter on Wednesday.

In a statement released on Monday, Dombrovskis announced that Brussels would "continue to engage intensively with our American counterparts," including US trade representative Robert Lighthizer.

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