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UK says 'deeply disappointed' by US tariff move on Airbus

The UK has said that it is deeply disappointed by the continued application of retaliatory tariffs under the Airbus dispute.

The US on Friday (14) increased tariffs on its planes imported into the country from Europe to 15%.


"The additional tariffs on aircraft announced by United States Trade Representative are not in the interests of the UK or the US, and I have made this point directly to my counterpart in Washington," said Secretary of State for International Trade, Liz Truss.

"We call on the US to engage in detailed discussions at a pace to reach a negotiated settlement before tariffs are authorised and imposed on the US concerning the ongoing Boeing dispute."

The UK in an official statement said that it is working hard to ensure a resolution as soon as possible

Under the new tariff, the US has announced an increase in the additional duty rate imposed on aircraft imported from the EU from 10% to 15%, effective 18 March 2020.

An addition of import duty of 25% on butchers knives from France and Germany, effective 5 March 2020.

Besides, continued tariffs of 25% on a range of non-aircraft products, including single malt whisky and biscuits, was also slapped.

The UK maintains that it is now compliant with WTO rules on this issue and secured full repayment of the A350 loan with interest.

We will continue to work with other Airbus nations, France, Germany and Spain, and the EU on a negotiated settlement, and on the use of Boeing retaliatory rights as and when awarded, an official statement said.

The office of the United States Trade Representative made the tariff announcement just days after President Donald Trump said it was time to talk “very seriously” about a trade deal with the European Union.

Washington imposed punitive taxes on the US$7.5 billion in European products after the World Trade Organization (WTO) gave the United States a green signal to take retaliatory trade measures against the EU over its subsidies to Airbus.

Airbus said the latest decision “ignores the many submissions made by US airlines, highlighting the fact that they – and the US flying public – will ultimately have to pay these tariffs”.

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