The administration of Donald Trump is threatening to present new tariffs on $4 billion European products following in increasing a major trade war. The US Trade Representative’s office (USTR) released a list of products made in the European Union that it is considering additional import duties. It includes Scotch whiskey, hams, pork, olives, pasta, and popular cheeses such as Gouda, Parmigiano Reggiano, and pecorino romano. The USTR said in a report that the U.S imports of these products were worth $4 billion in 2018. The move increased a long-running trade dispute between the United States and the European Union. It also provides the latest example of Trump’s bruising style on trade policy.
The United States had proposed tariffs on European Union in April worth $21 billion. It includes salmon fillets, cheeses such as stilton and virgin olive oil. The U.S and the EU have been involved in a dispute over aircraft subsidies to Airbus and Boeing for at least 15 years. They have threatened to impose billions of U.S dollars of tit-for-tat tariffs on airplanes, food, and tractors. Both sides have used billions of U.S dollars from government budgets to take a competitive advantage. The U.S started charging import levies on steel and aluminum last year from allies including the European Union.
The EU retaliated with tariffs on €2.8 billion worth of U.S goods including orange juice, bourbon whiskey, and motorcycles. It also forced Harley Davidson to shift some of its production out of the United States. The USTR also confirmed the new tariffs and considered as a retaliatory move against airplane subsidies and said it would hold a public hearing on the proposed new levies. The senior officials from Boeing and a U.S aerospace trade group urged the U.S government last month to narrowly tailor any tariffs imposed on the EU over illegal aircraft subsidies to avoid harming American manufacturers. The Distilled Spirits Council of the United States criticized the latest tariff threats and warned they would endanger U.S jobs and hurt consumers.