New US tariffs on French, German aircraft parts, wines to start Tuesday
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard
TUESDAY, MAY 24, 2022
TUESDAY, MAY 24, 2022
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Splash
  • Features
  • Videos
  • Long Read
  • Games
  • Epaper
  • More
    • COVID-19
    • Bangladesh
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Subscribe
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
New US tariffs on French, German aircraft parts, wines to start Tuesday

Global Economy

Reuters
12 January, 2021, 04:35 pm
Last modified: 12 January, 2021, 04:34 pm

Related News

  • Biden's Asian economic talks include 13 countries, and no China
  • Biden says weighs reducing tariffs on China, asking OPEC to pump more oil
  • Third possible case of monkeypox found in the US
  • Biden, on inaugural Asia visit, says he would be willing to use force to defend Taiwan
  • In Tokyo, Biden endorses Japan's plan to beef up its defences

New US tariffs on French, German aircraft parts, wines to start Tuesday

The notice follows an announcement by the US Trade Representative's office that it would impose an additional 15% tariff on aircraft parts, including fuselage and wing assemblies, and a 25% duty on certain wines

Reuters
12 January, 2021, 04:35 pm
Last modified: 12 January, 2021, 04:34 pm
An US flag waves in the wind on a boat near the Statue of Liberty in New York August 31, 2011. REUTERS/Lucas Jackson
An US flag waves in the wind on a boat near the Statue of Liberty in New York August 31, 2011. REUTERS/Lucas Jackson

The US government on Monday said it would begin collecting new duties on aircraft parts and other products from France and Germany from Tuesday after failing to resolve a 16-year dispute over aircraft subsidies with the European Union.

In a notice to shippers late on Monday, US Customs and Border Protection said the new duties would apply from 12:01 a.m. ET (0501 GMT) on Tuesday as part of the long-running battle over government subsidies to Europe's Airbus SE and its US rival, Boeing Co.

The notice follows an announcement by the US Trade Representative's office that it would impose an additional 15% tariff on aircraft parts, including fuselage and wing assemblies, and a 25% duty on certain wines.

Talks between Washington and Brussels to end the battle stalled in the final weeks of the Trump administration, a European source familiar with the matter said. Washington had also pressed to reach a separate solution with Britain, which has a share in Airbus, but has exited the EU.

Brussels said it would seek swift resolution of the issue with US President-elect Joe Biden, who takes office on Jan. 20. The Biden team had no immediate comment on the tariff issue.

Both Washington and Brussels have won cases at the World Trade Organization, the former allowed to impose tariffs on $7.5 billion of EU goods and the latter extra duties on $4 billion of imports from the United States.

Airbus said USTR's expansion of tariffs to include aircraft components made in France and Germany was "counterproductive" and would wind up harm US workers at its Mobile, Alabama site where it assembles A320 and A220 aircraft.

The measure will hit A320 production which uses components from France and Germany, while the A220 production does not, according to an Airbus spokesman. Airbus delivered more than 40 A320 Family planes from Mobile in 2020, but the number will be lower this year due to the pandemic, a spokesman said.

The initial impact may be muted since aerospace companies generally procure large components such as wings and fuselages well in advance to ensure smooth production flows.

Aircraft were already covered by US tariffs, but the addition of components closed a loophole that had allowed Airbus planes assembled in Mobile to be sold in the United States free of tariffs. Unless the issue is resolved quickly, those aircraft are likely to be uncompetitive in the US market.

Some alcohol from the Airbus-producing nations - France, Germany, Spain and Britain - had already been subject to tariffs, but new varieties are now affected. The French wine exporters' federation called it a "sledgehammer" blow.

Unlike previous short-notice tariff actions, USTR did not grant any exclusions for products already in transit or "on the water", said Ben Aneff, president of the US Wine Trade Alliance, calling the decision "deeply unfair."

Aneff urged US Trade Representative Robert Lighthizer in a letter on Monday to amend the action to exempt goods in transit when the tariffs were announced less than two weeks ago on Dec. 30, noting that ocean transit can take 22 to 40 days.

Aneff said the move would hit many US businesses in the hospitality, restaurant and wine industry with sharply higher costs at a time when they were already being hammered by pandemic-related closures.

World+Biz

USA / France / tarrif

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Corporates go cashless…tax cut on cards
    Corporates go cashless…tax cut on cards
  • Rising revenue collection a false dawn, economists say
    Rising revenue collection a false dawn, economists say
  • Why we must resist geoeconomic fragmentation—and how
    Why we must resist geoeconomic fragmentation—and how

MOST VIEWED

  • General view of people walking past the World Economic Forum (WEF) logo during the forum in Davos, Switzerland on 23 May, 2022. Photo: Reuters
    Economic storm looming, business and government leaders warn in Davos
  • A Russian rouble banknote is placed on euro banknotes in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
    Russian rouble leaps to near 7-year high vs euro
  • A Russian rouble banknote is placed on euro banknotes in this illustration taken March 1, 2022. REUTERS/Dado Ruvic/Illustration/File Photo
    Rouble firms, heading back towards multi-year highs vs dollar, euro
  • US President Joe Biden arrives aboard Air Force One at Yokota US Air Force Base in Fussa, on the outskirts of Tokyo, Japan May 22, 2022. REUTERS/Kim Kyung-Hoon
    Biden's Asia economic talks include 13 countries, no China
  • U.S. President Joe Biden discusses the United States' response to Russian invasion of Ukraine and warns CEOs about potential cyber attacks from Russia at Business Roundtable's CEO Quarterly Meeting in Washington, DC, U.S., March 21, 2022. REUTERS/Leah Millis
    Biden says weighs reducing tariffs on China, asking OPEC to pump more oil
  • A man rides his trishaw loaded with empty plastic barrels which are used to carry oil in the western Indian city of Ahmedabad March 10, 2011. REUTERS/Amit Dave/Files
    Oil prices at $110/barrel pose 'bigger threats' than inflation, says India's oil minister

Related News

  • Biden's Asian economic talks include 13 countries, and no China
  • Biden says weighs reducing tariffs on China, asking OPEC to pump more oil
  • Third possible case of monkeypox found in the US
  • Biden, on inaugural Asia visit, says he would be willing to use force to defend Taiwan
  • In Tokyo, Biden endorses Japan's plan to beef up its defences

Features

Musk is denying the sexual harassment allegation that surfaced this week. Photo: Bloomberg

Elon Musk’s crazily banal week 

12h | Panorama
Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

Asus Zenbook 14 Flip OLED: A touch of brilliance to your life

15h | Brands
Keep your phone by your side with this armband

Keep your phone by your side with this armband

13h | Brands
Are Focallure gel masks worth the hype?

Are Focallure gel masks worth the hype?

14h | Brands

More Videos from TBS

Why are Duranta TV shows popular?

Why are Duranta TV shows popular?

7h | Videos
Donbas is hell, says Zelenskiy

Donbas is hell, says Zelenskiy

8h | Videos
Threat of Monkeypox on the horizon

Threat of Monkeypox on the horizon

9h | Videos
Mosque of Mughal period in Gazipur

Mosque of Mughal period in Gazipur

9h | Videos

Most Read

1
Tk100 for bike, Tk2,400 for bus to cross Padma Bridge
Bangladesh

Tk100 for bike, Tk2,400 for bus to cross Padma Bridge

2
A packet of US five-dollar bills is inspected at the Bureau of Engraving and Printing in Washington March 26, 2015. REUTERS/Gary Cameron
Banking

Dollar hits Tk100 mark in open market

3
Bangladesh at risk of losing ownership of Banglar Samriddhi
Bangladesh

Bangladesh at risk of losing ownership of Banglar Samriddhi

4
PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire
Crime

PK Halder: How a scamster rose from humble beginnings to a Tk11,000cr empire

5
BSEC launches probe against Abul Khayer Hero and allies
Stocks

BSEC launches probe against Abul Khayer Hero and allies

6
The reception is a volumetric box-shaped room that has two glass walls on both the front and back ends and the other two walls are adorned with interior plants, wood and aluminium screens. Photo: Noor-A-Alam
Habitat

The United House: Living and working inside nature

The Business Standard
Top
  • Home
  • Entertainment
  • Sports
  • About Us
  • Bangladesh
  • International
  • Privacy Policy
  • Comment Policy
  • Contact Us
  • Economy
  • Sitemap
  • RSS

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net

Copyright © 2022 THE BUSINESS STANDARD All rights reserved. Technical Partner: RSI Lab