The US says it will implement a 10% tariff on EU aircraft and a 25% tax on “agricultural and other products” starting Oct. 18. This follows a World Trade Organization’s ruling allowing the US to impose up to $7.5 billion in tariffs on European products each year.
This meant that the US Trade Representative (USTR) and the EU have each drafted lists of at least $20 billion worth of each other’s products to tax in response to this WTO decision. Meanwhile, tariffs from the US trade war with China are estimated to cost US households $2,000 each by next year, per the National Foundation for American Policy.
The USTR released a list on Wednesday of which European products will be hit with tariffs; these include coffee, olive oil and fruit, mainly cherries, peaches, pears, oranges, lemons, and other agricultural goods.
The US can block the billions in trade from Europe until the two sides have negotiated a settlement or the WTO decides Europe has complied with its guidelines. Both parties are expected to meet for trade talks Oct. 14.
The Office of the U.S. Trade Representative (USTR) is responsible for developing and coordinating U.S. international trade, commodity, and direct investment policy, and overseeing negotiations with other countries. The head of USTR is the U.S. Trade Representative, a Cabinet member who serves as the president’s principal trade advisor, negotiator, and spokesperson on trade issues.