Published On: Thu, Aug 22nd, 2019

Donald Trump to give multibillion dollar tariffs on EU | World | News

The European Commissioner for Trade Cecilia Malmstrom has warned the bloc that they need to prepare themselves for Trump’s sanctions as trade tensions continue. Products including whisky, cheese and olives, could be affected following a dispute over aircraft subsidies. The European company Airbus attacked the US’s Boeing ‘Dreamliner’ programme as only being possible due to illegal subsidies.

Mr Trump is expected to charge tariffs on European goods with Ms Malmstrom saying they need to “brace” for it.

According to Politico, one EU diplomat said: “There is a big probability that the US will apply these tariffs as soon as the WTO arbitrator has ruled.

“It is what the US administration likes.”

A spokesman from the Office of the US Trade Representative said: “It is out hope and exception that the additional duties, if needed, will provide an incentive for the EU, once and for all, to stop subsiding Airbus in ways that have adverse effects on the United States.”

Last month, Mr Trump tweeted: “The World Trade Organisation finds that the European Union subsidies to Airbus has adversely impacted the United States, which will now put tariffs on $11 billion of EU products.

“The EU has taken advantage of the US on trade for many years. It will soon stop.”

READ MORE: The FOUR reasons Trump really wants to buy Greenland

Ms Malmström has threatened to impose €39 billion of retaliatory tariffs on U.S. goods if Trump follows through with his threat to impose duties on automobiles and automotive parts.

Trade tensions may worsen after any decision by a World Trade Organisation panel in September, which will address the level of trade sanctions the US could impose on the EU.

Data from the Office of the U.S. Trade Representative shows that in 2018, the U.S. imported $683.9 billion of EU goods and $557.9 billion from China.

An expert has warned that the US and Europe can’t afford a trade war.

Fredrik Erixon, director of the think tank ECIPE, said: “While the U.S.-China trade war is now starting to have effects on the broader health of the economy, it has taken a while and some of the effects were balanced by a benign economic climate.”

“That is not the case if there is a serious increase in tariffs between the U.S. and the EU in the autumn. Both economies are slowing down, and the cyclical effect of the tariffs is likely to be pretty strong.”

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