Matrix Report
The transatlantic dispute that has gone beyond two decades will likely escalate when the European Union will impose a $4 billion tariff on the United States. This is in retaliation to the US tariffs on the EU for their subsidies on the Airbus, and consequently illegal financing of the company. Even though the dispute was resolved years ago, there have been claims from both sides that the US finances the operations of Boeing, and the EU finances Airbus, in a similar fashion. President Donald Trump and European Commission President Claude Juncker have been involved in a dispute for over a year, with minimal chances of a resolution.
This is a problem for the two sides, as the US looks to impose so much as $7 billion of tariffs on the EU bloc, while the EU looks to retaliate with a $3.2 billion tariff charge on goods against the U.S. The existing tariffs are applied on Steel and Aluminium industries in the U.S. They also believe that tariffs and duties on U.S exports will be risen to $20 billion, if U.S decides to go ahead will its idea of imposing tariffs on the European bloc. Further $4 billion will be applied as well, which will deepen the rift between the two sides of the struggle. The dispute that ended in 2006, amicably, through negotiations will become void if both sides keep playing this game.
Both sides state that the way to resolve this matter is if they stop the illegal subsiding of the Airbus in EU, and Boeing in the U.S. That seems unlikely as of now, since both sides are using pure conjecture to justify the tariffs they wish to place on both sides.
