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FX.co ★ EU backs down in trade war with US over Airbus-Boeing subsidies

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Forex Humor:::2020-08-10T14:33:40

EU backs down in trade war with US over Airbus-Boeing subsidies

As Washington prefers to play by the rules, it expects the same from all its partners. And this is not surprising since the fulfillment of obligations is the basis for a good partnership. Therefore, the US government could not ignore the fact that the EU was providing direct subsidies to support the European plane maker Airbus, Boeing's main competitor. The US officials believe that by doing so the EU disrupted the balance in the aircraft construction market and broke the rules of the fair market competition. So, the White House stepped in and reminded its trade partner that it should follow the rules of the game. To make its message more clear, the US imposed heavy tariffs on a number of European goods. Straight after that, the Airbus management refused any financial support from the EU government. Airbus representative announced that “the tariffs imposed by the United States Trade Representative (USTR) are currently harming all targeted industry sectors, including US airlines, and are adding to a very difficult environment as a consequence of the COVID-19 crisis." This move can be considered a real surrender of Airbus and the EU as well in this long-lasting trade war with the United States. Currently, the European economy is highly dependent on the US which remains the largest market for European exports.


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