WTO approves US tariffs worth $7.5 bn on EU goods in Airbus retaliation

The World Trade Organization on Wednesday gave Washington the green light to slap annual tariffs on $7.5 billion (6.8 billion euros) worth of EU goods in retaliation for the bloc’s illegal support of Airbus.

The ruling is the largest arbitration award in WTO history and a landmark moment in the Airbus-Boeing battle, which threatens to intensify already strained trade relations between the US and the European Union.

In Washington, President Donald Trump hailed the decision, calling it a “big win” for the United States and claiming credit for the outcome of the 15-year-old case.

“We’re having a lot of wins at the WTO,” Trump said. “All of those countries were ripping off the United States for many years and they know I’m wise to it.”

The EU immediately threatened to respond to any US move.

“If the US decides to impose WTO authorized countermeasures, it will be pushing the EU into a situation where we will have no other option than do the same,” Brussels said in a statement.

The case began in 2004, when Washington accused Britain, France, Germany and Spain of providing illegal subsidies and grants to support the production of a range of Airbus products.

It has since been mired in the WTO’s complex dispute settlement system, which allows for a range of appeals.

But Wednesday’s decision, which cannot be appealed, marks the first time the US has been cleared under international trade law to slap countermeasures on EU products. The sanctions could be in place by the end of the month.

With its Brexit deadline less than a month away, Britain said in a statement that “it should not be subject” to any sanctions Washington imposes on the EU and that it was seeking confirmation from the WTO that it was fully compliant will all rulings related to Airbus.