Trade

Trump Increases Tariffs On European Goods

Written by SK Ashby

This is only good news in that it could have been much worse.

The Trump regime did not increase tariffs on cheese, wine, and other luxury goods imported form Europe to 100 percent over the weekend, but the regime did announced that tariffs on some goods will increase while others will be added to the original list of goods subject to duties.

Tariffs on aircraft and aircraft parts imported from Europe will increase next month.

Tariffs will rise from 10% to 15% on aircraft imported from the EU, like Airbus, and will go into effect on March 18. The US has long complained the EU put Boeing at a disadvantage through its financial assistance to Airbus. [...]

Some had worried that the US would levy tariffs of up to 100%, as it threatened to do at the end of last year. Lawmakers and businesses sharply criticized the tariffs of up to 100%, warning they would raise prices for American businesses and consumers. Harmon Skurnik, the president of Skurnik Wines and Spirits in New York, estimated in a Washington Post op-ed Thursday that the 100% tariff would raise the price of a $50 bottle of Burgundy, Rioja or Barolo to over $100.

While tariffs on European spirits were not increased to 100 percent, at least not yet, some items were added to the list of goods subject to tariffs of 25 percent.

The fact that tariffs were not increased to 100 percent over the weekend does not mean they won't eventually do that, however, as the legal window of opportunity to do that has only just opened; not closed.

Increasing tariffs on aircraft imported from Europe still isn't going to change the fact that Boeing shot themselves in the foot, but it will make it more expensive for American carriers to operate if they use European aircraft.

If the Trump regime's pattern of behavior is any indication, I expect we'll see fresh threats to sanction European goods by the end of the month if not the end of this week.