WASHINGTON: The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus and French and Scottish alcoholic products among the high-profile targets.
The tariffs, which took effect just after midnight in Washington (0401 GMT), came after talks between European officials and US trade representatives failed to win a last-minute reprieve.
The WTO-endorsed onslaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilizing the global economy further.
In the line of fire are civilian aircraft from Britain, France, Germany and Spain — the countries that formed Airbus — which will now cost 10 percent more when imported to the US.
But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months. Wine from France, Spain and Germany will now face 25 percent tariffs.
Speaking in Washington hours before the tariffs were due to come into effect, France’s Economy Minister Bruno Le Maire warned the move would have serious repercussions.
“Europe is ready to retaliate, in the framework of course of the WTO,” he told reporters shortly after meeting with US Treasury Secretary Steven Mnuchin on the sidelines of the International Monetary Fund annual meetings.
“These decisions would have very negative consequences both from an economic and a political point of view.”
Le Maire was due to meet US Trade Representative Robert Lighthizer later on Friday.
He also warned the US against starting another front in its trade conflicts and again called for a negotiated solution.
At a time when the global economy is slowing, “I think that our responsibility is to do our best to avoid that kind of conflict,” Le Maire said.
The Europeans have long advocated negotiation over conflict and they themselves will be able to impose tariffs next year to punish the United States for subsidizing Boeing.
But EU officials had already offered in July to call a truce on subsidies for planemakers, in which both sides would admit fault and agree to curtail state aid — to no avail. The two sides have been involved in a row over the subsidies for 15 years.
The tariffs kick in just days after the United States was given the formal go-ahead by the World Trade Organization.
As recently as Wednesday, Trump singled out the Europeans for being unfair with the US on trade, but said his door was open to negotiate a settlement.
The Europeans fear above all that Trump will impose heavy duties on imports of European cars around mid-November.
This would be a serious blow for the German automotive sector in particular, even if giants such as Volkswagen or BMW also manufacture in the United States.
“Our products are very hard to bring in (to Europe)” when Europeans easily import their cars into the United States, Trump said.
The Airbus-Boeing row is just one of several issues stoking transatlantic tensions that quickly descended into acrimony when Trump took office in 2017.
Trump embraced a protectionist agenda, slapping import duties on steel and aluminum from the EU and other allies, while also threatening tariffs on cars.
Trade groups in Europe such as winemakers, German tool manufacturers and whisky producers in Scotland have kept a clamor of protest, demanding Washington reverse tack.
The US leader and European Commission President Jean-Claude Juncker agreed in July 2018 to a cease-fire in the conflict to hold trade talks that have so far led nowhere.
The epic legal battle between Airbus and Boeing at the World Trade Organization 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.
A year later, the EU alleged that Boeing had received $19.1 billion worth of prohibited subsidies from 1989 to 2006 from various branches of the US government.
The two cases were then tangled up in a legal quagmire, with each side being given partial vindication after a long series of appeals and counter appeals.
US imposes tariffs on EU goods, targets Airbus
US imposes tariffs on EU goods, targets Airbus
- Civilian aircraft from Britain, France, Germany and Spain — the countries that formed Airbus — which will now cost 10 percent more when imported to the US
US Treasury welcomes reactivation of Syria central bank account at New York Fed
RIYADH: The US Treasury said it welcomed the reactivation of the Central Bank of Syria’s account at the Federal Reserve Bank of New York, marking the first time it has been operational since 2011.
The account had effectively been frozen after the outbreak of Syria’s civil war in 2011, when Washington imposed sweeping targeting the Syrian government, state institutions and individuals associated with the regime, designed to isolate Damascus financially and restrict its access to international banking channels.
It is the latest step in efforts to reintegrate Syria into the international financial system. The country has also begun reconnecting to the Society for Worldwide Interbank Financial Telecommunication network, a move that would end roughly 14 years of financial isolation and restore access to global banking channels.
In a statement posted on social media, the US Treasury Department said it was working with Syria’s new authorities to “responsibly reintegrate Syria into the global financial system,” adding that it welcomed the Syrian central bank’s announcement that its account at the New York Fed had been restored.
The post also stated: “Sanctions relief was just the first step to realizing the President of the United States’ historic vision of greatness and prosperity in Syria.”
The release added: “We welcome the Syrian Central Bank’s momentous announcement that its account at the Federal Reserve Bank of New York was officially reactivated for the first time since 2011.”
Over the course of the more than 13-year conflict, sanctions expanded to include broader economic restrictions, including the Caesar Syria Civilian Protection Act enacted in 2019, which targeted foreign entities conducting business with the Syrian government.
The measures contributed to Syria’s deep financial isolation and complicated humanitarian and reconstruction efforts.
Efforts to restore financial channels have been discussed intermittently as international actors assess pathways for humanitarian assistance and potential economic stabilization.
However, broader sanctions frameworks remain in place, and significant political and regulatory hurdles continue to shape Syria’s reintegration into the global financial system.
In recent years, regional institutions have gradually renewed engagement with Syria as part of broader efforts to stabilize the country and support economic recovery after more than a decade of conflict.
Syria was readmitted to the Arab League in 2023 after a 12-year suspension, reopening diplomatic channels with several Arab states.
