The United States had promised (see EUROPE 12382/20), but it has now actually happened: on 14 February, the US Trade Representative announced an increase of the retaliatory measures implemented since 18 October under the WTO arbitration in the transatlantic dispute over aircraft manufacturer Airbus (see EUROPE 12352/16).
Beginning on 18 March 2020, the US will increase the level of tariffs imposed on aircraft imported from the EU by 10% to 15%. An import duty of 25% will be added to butcher knives from France and Germany, effective Thursday 5 March.
In Davos, Donald Trump said he was working hard to secure a trade agreement with the Europeans before the November presidential elections (see EUROPE 12409/22).
Within the European Commission, there continues to be faith in Washington’s commitment to the transatlantic talks, which have been assiduously pursued by Trade Commissioner Phil Hogan and his administration (see EUROPE 12420/20), according to Commission sources.
In the European Parliament, however, the tariff diplomacy pursued by the White House is increasingly annoying.
“Trump continues to escalate against the EU”, said Trade Committee Chair Bernd Lange (S&D, Germany) on 15 February. “As of today, tariffs on steel and aluminium products (see EUROPE 12414/16); from 18 March, increased tariffs on aircraft and threats of further tariffs. It is important to be clear here - no concessions under pressure. No way, Mr President!”
There has been no official reaction from Member States, but this tweet, posted on 15 February by Miguel Berger, director general at the German Federal Foreign Office, calls for a European response. “US escalating trade conflict with the EU over Airbus and Boeing subsidies. Zero willingness to enter into negotiations. DG Trade should implement countermeasures”, he urged. (Original version in French by Hermine Donceel)