due to the large number of differences, the EU and the United States was on the verge of a trade war. The EU has requested authorization from the world trade organisation (WTO) for the imposition of duties in the amount of 11.2 billion dollars on American goods in connection with the longstanding dispute over subsidies to national aerospace companies, according to Bloomberg.
the United States accused a number of countries in the EU of violating WTO rules under the subsidies of the Corporation Airbus, which allegedly did the damage to Boeing Corporation, and levied duties in the amount of 7.5 billion dollars some European goods. The European Union has put forward a counter-accusations, claiming that due to illegal subsidies to Boeing from the US one gets a competitive advantage in the international arena.
the WTO will make a decision regarding a retaliatory trade tariffs of the EU against the United States in July. The losses incurred by not only Boeing, but the coal producers, farmers and fisheries.
the Escalation of tensions will be particularly painful in the current environment, when companies face a crisis caused by the pandemic COVID-19. Affected sector of the economy important in the presidential race in the United States. They are concentrated mostly in States that support the Republican party, which trump nominated for the presidency, for example, in Missouri (coal production) and Louisiana (fishing).
This is not the first time that the EU is using similar methods to exert political pressure on the incumbent. In 2018 the EU has introduced trade tariffs on goods from the USA, and we had metallurgical products, agricultural and other products. The European reaction was a response to the imposed Washington fee at the rate of 25 percent on imported steel and 10% aluminum.
Taking protectionist measures, the administration trump imposes duties on products from all over the world. 2017 waged a trade war between Beijing and Washington. However, in early 2020, the parties entered into a truce. In the first phase of the trade agreement, China has agreed to buy the American side of the goods and services to $ 200 billion. USA in response refused to restrictions on Chinese imports. Due to the deterioration of relations on the background of suspicion of the U.S. in China the spread of coronavirus truce in the trade war was threatened.
