According to USTR
The US is considering higher EU tariffs after WTO rulling
The WTO back in October authorized the US to go ahead with tariffs worth billions of dollars on EU goods. The hope at the time was that it would bring both sides to the table to negotiate a fairer trade deal.
However, a US trade representative is saying
- the WTO panel finds that EU launch aid to Airbus continues to cause adverse effects that costs US firms significant revenue.
- They add that strong action is needed to convince EU to end market distorting subsidies.
- USTR, citing lack of progress in ending dispute over aircraft subsidies, says will review increasing tariffs on EU products, adding other items to current list.
That’s not good news for EU/US trade. The EURUSD has not reacted to the news (in fact it it may be a pip or two higher). The price remains above its 100 day MA at 1.10708.