European planemaker, Airbus, has been dealt a blow after the United States started levying a 15% duty on imported aircraft parts coming from France and Germany. The tariff will have a significant effect on the production of the Airbus A320 in Mobile, Alabama.
The company has production in five countries and assembles both A320 and A220 aircraft at a plant in Mobile, Alabama — products that haven’t previously been subject to tariffs, while A320s completed in France and Germany are. That could change, seeing that the extended levies now cover major parts like fuselage sections, wing and wing assemblies brought in from Europe, along with horizontal and vertical stabilizers.
Other European goods set to see an impact from the widened net of additional tariffs are European made wines, which will attract a 25% duty, and French and German-made aircraft parts, which will attract a 15% tax.
Last year, the World Trade Organization (WTO) granted Washington tariffs of $7.5 billion on EU goods, and the EU added duties on $4 billion of imports from the United States.
The U.K. government has separately opted to drop tariffs on U.S. goods in a move designed to reduce trade tensions with the U.S. as the country completes its split from the EU.
See Also:
