The European Union (EU) has announced plans to impose tariffs on $4 billion of US goods as the trade war between them continues to heighten.
World Trade Organization (WTO) authorized the taxes last month and will go into effect on Tuesday, 10th November 2020. The tariffs affect items such as tractors, aircraft, and food items like ketchup and orange juice. Henceforth, US aircraft imported to Europe will face taxes of 15%. The European Union said it would apply border taxes of 25% to a list of other items, which include tractors, tobacco ketchup, orange juice, cheddar cheese, and sweet potatoes.
Fun Fact: Do you know which entrepreneur made tractors before entering the sports car business?
The European Union said it still hoped to settle the fight, which saw the US impose taxes on European products last year. In September 2019, the US imposed 10% taxes on European-made Airbus planes and 25% taxes on French wine, Scotch and Irish whiskies, and cheese from across the continent of Europe. The new tariffs resulted from the World Trade Organization giving Washington the go-ahead to impose tariffs on $7.5 billion worth of European Union goods annually.
European Union Trade Commissioner Valdis Dombrovskis said they wanted to see both sides remove their respective tariffs, resulting from a long-running feud over state support provided to plane-maker Boeing and European rival Airbus.
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