USTR raises tariffs on European aircraft amid subsidies-row

The US Trade Representative’s (USTR) Office announced late Friday that it would raise tariffs on aircraft imported from the European Union (EU) to 15% from 10%, per Reuters.

Additional Details:

Would make minor modifications to 25% tariffs imposed on cheese, wine and other non-aircraft products from the EU, including dropping prune juice from the list.

It did not raise the tariff rates on those products, as it had suggested it might do in October.

The higher aircraft tariff will take effect March 18.

This comes as a set back for the European aircraft manufacturer, Airbus, as they consider the hike illegal.

Airbus said it would ultimately harm US airlines and consumers who have to pay extra levies, as cited by CNBC news.

The escalating US-EU trade tensions is likely to exacerbate the pain the shared currency, as EUR/USD settled the week close to a 34-month low of 1.0827, having failed to sustain the bounce above 1.0850.