In the recent time, a selection of chief European companies reported their share price sink after the reports that the WTO (World Trade Organization) granted US President Donald Trump the right to enforce billions of dollars in taxes on the EU (European Union) imports. The WTO’s verdict will be to compensate the U.S. for what it has argued are prohibited subsidies benefited by the European plane manufacturer Airbus. Both Reuters and Politico stated that the ruling has been done in the US’ favor, meaning tariffs can soon be enforced on some goods.
A media representative for the WTO stated to CNBC that the association was not yet commenting since the case remained active and details had to keep confidential. The final ruling would mark the discontinuation of a complaint first brought by the U.S. in 2006. A spokesperson for European Commission said to CNBC that it did not comment on leaks but stated that the EU had “constantly interacted with the U.S. that the EU is keen to work on a balanced and fair solution for our individual aircraft industries.” For long, Washington has believed that the EU nations have unlawfully backed Airbus by conceding subsidized loans called “launch aid,” plus separate state assistance for the development of superjumbo A380 and A350.
On a similar note, Airbus was in the news as the plane maker along with French exporters slipped since the U.S. levies loomed in subsidy row. The shares in Airbus and other important French exporters declined as Europe and the U.S. rimmed closer toward retaliatory sanctions in a long-running argument over aircraft subsidies. The WTO has approved the US’ request to enforce levies on some European goods in the new episode of a bilateral dispute over aircraft subsidies that can also cause European reprisals, two sources well-known with the case stated.