The European Union (EU) announced retaliatory duties of 15% and 25% on certain U.S. products as a result of the longstanding Boeing World Trade Organization (WTO) litigation, effective November 10, 2020. The action subjects U.S.-origin aircraft to an additional 15% duty, although aircraft parts are not subject to additional duties. In addition, certain U.S.-origin tractors, motorcycle and bicycle parts, billiard and arcade games, video game consoles, seafood, cheese, sweet potatoes, nuts, fruits, vanilla, vegetable fats, molasses, chocolate, preserves, fruit juices, coffee, tea, or mate extracts, prepared sauces, soups, vermouth, spirits, unmanufactured tobacco, essential oils, albumins, peptones, polymers of vinyl chloride, trunks and suitcases, and cotton are now subject to an additional 25% duty.
The duties are the result of a WTO finding that the United States failed to bring certain measures pertaining to the U.S. treatment of Boeing into conformity with the WTO Agreement on Subsidies and Countervailing Measures. The United States has imposed similar duties on EU-origin products in response to a corresponding dispute on the European Union’s treatment of Airbus.