Airbus says US custom duties counterproductive, EU should respond ‘appropriately’

European planemaker Airbus says a US decision to levy further tariffs on aircraft components made in the US will harm its own workers and consumers and the European bloc should respond “appropriately.”

The Office of the United States Trade Representative (USTR)’s “expansion of tariffs to include components for aircraft manufactured in the US – by American workers – is counterproductive in every way,” said a spokesman for Airbus, which has sites in Britain, France, Germany, and Spain.

“Airbus trusts that Europe will respond appropriately to defend its interests and the interests of all European companies and sectors, including Airbus, targeted by these unwarranted and counterproductive tariffs,” the statement said.

Separately on Thursday, the European Commission regretted the US decision to impose more duties on French and German products as part of a persisting spat between Airbus and Boeing, complaining that Washington had “unilaterally” damaged current negotiations with the administration of outgoing US President Donald Trump to settle the row.

It also said that it would seek a solution to the 16-year battle over aircraft subsidies with the incoming administration of US President-elect Joe Biden, who will take office on January 20.

The commission “regrets that the United States has chosen to add further EU products to its retaliation list in the WTO Airbus case on aircraft subsidies,” it noted.

“The EU will engage with the new US administration at the earliest possible moment to continue these negotiations and find a lasting solution to the dispute,” the commission further said.

Earlier this year, the World Trade Organization (WTO) authorized the EU to impose retaliatory custom duties on American products.

However, the Trump administration argues that it has been penalized by the method of calculation, which has led to an excessive amount of tariffs slapped on American products.

The aviation dispute predates Trump, but Washington quickly seized the opportunity to levy $7.5 billion in custom duties against Europeans after the WTO allowed it to do so.

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