The author is a profe上海千花坊e-dean of the School

With the Office of the United States Trade Representative threatening to impose new tariff

s on $4 billion worth of European Union goods, the trade conflict between the US and the EU has inten上海千花坊品茶微信

sified. And if the US makes good the threat it issued on July 1, the additional tariffs would cover $25 billion of EU go

上海千花坊ods-in April the US had decided to impose additional tariffs on $21 billion of EU products. In addition, the US adm

inistration launched a Section 301 investigation against the digital service tax of France on July 10.

Washington’s move seems to have roots in the 15-year-old dispute over the su上海千花坊

sidies given to Boeing by the US and to Airbus by the EU. The US is using tariffs t

上海千花坊品茶微信o exert pressure on the EU to reduce subsidies to Airbus so Boeing can maintain its competitiveness in the global ma

rket and the jobs in the US plane manufacturing industry could be protected.

The US is wielding tariff as weapon also to increase its bargaining chips in the negotiations over “three zeros”-zero ta上海千花坊

riff, zero tariff barriers and zero subsidy-for non-auto industrial products.

Since the US and the EU have wide differences over auto and agri上海千花坊品茶微信

cultural products, the negotiations remain mired in uncertainty, although Washington com

pelled Brussels to continue the talks by threatening to impose fresh tariffs on EU goods in April.上海千花坊

As US President Donald Trump prepares to launch his re-election campaign, he is trying to mitigate US farmers’ sufferings, as the

votes from the agricultural belts helped him win the 2016 presidential election. The US administration has pro上海千花坊品茶微信

vided numerous subsidies for farmers to help offset their losses due to the US’ trade disputes with China, the EU and othe

r economies, but subsidies alone cannot solve the farmers’ problems. So Washington has put some EU agricu

ltural products on the tariff list in an effort to protect its agricultural products market.

However, the fact that the EU has agreed to resume negotiations on subsidies to the plane ma

nufacturing industry does not mean it will not take countermeasures if the US does impose mo

re tariffs on EU goods. In April, when the US levied additional tariffs on $21 billion of EU go

ods, Brussels responded by imposing tariffs on€20 billion ($22.43 billion) of US products.

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