European multinational aerospace corporation, Airbus has said in a statement on February 15 that it “deeply regrets” the increase in tariffs on its planes imported in the United States from Europe. The company further said in a statement that Washington's decision to further increase the tariffs to 15 per cent from March 18 has escalated the tensions regarding trade between the US and the EU. Airbus also cited “more instability” for the American airlines which are reportedly struggling with the shortage of aircraft.
Airbus deeply regrets USTR’s decision to increase tariffs on aircraft imported from the EU as well as the decision to maintain tariffs on goods from other sectors. Read our statement: https://t.co/4TifzudduE— Airbus PRESS (@AirbusPRESS) February 15, 2020
According to the official website, Airbus said, “USTR’s decision to impose tariffs further escalates trade tensions between the US and the EU, thereby creating more instability for US airlines that are already suffering from a shortage of aircraft.”
The recent increase of US duties on Airbus imports which were at 10 per cent since October when Washington imposed $7.5 billion of European products. The recent statement by Airbus also said that the discussions between the US and the company will continue to take place. It further added that the US “ignores many submissions” made by the American airlines to call attention to the fact that the administration along with the public who flies on these planes will have to pay for the tariffs imposed by the White House.
Airbus also added that it would continue to have discussions with its American customers along with the government in order to end the 15-year long dispute. However, the company also acknowledged that any further escalation by the US will complicate the efforts to find a “negotiated outcome” and therefore, called it “regrettable”. However, the European company is sure that the position of US will change after the World Trade Organisation “will authorize” the EU to impose tariffs of America's Boeing aircraft including 737 Max, 787, and 777 in May or June 2020.
The statement said, “ Airbus has and will continue to push for a negotiated settlement to this 15-year-long dispute. USTR’s further escalation complicates efforts to find a negotiated outcome to this dispute. This is regrettable.”
The United States imposed tariffs worth $7.5 billion on European goods in October 2019 including Airbus, French wine and Scottish whiskeys despite the request from the European officials to reprieve it last minute along with the warning of retaliation. The World Trade Organisation ruled that the US can impose tariffs on European goods annually because the European government had given illegal subsidies to Airbus.