European Union (EU) is planning to impose tariffs on Boeing jets as a retaliatory measure if trade talks with the United States (US) fail. The European Commission, which is tasked with the EU’s trade policy, is considering to add civilian aircraft to a list of roughly $100 billion in annual imports from the US to be targeted, the Financial Times reported, citing sources.
This development comes just a day after Airbus CEO Guillaume Faury urged tariffs on Boeing if US-EU trade talks fail.
“Do not result in a positive outcome, I imagine that there will be – and that’s what we wish—reciprocal tariffs on airplanes to a force a higher level of negotiation,” said Airbus CEO, according to the French press agency, Agence France-Presse (AFP).
According to a Reuters report, the proposal to impose tariffs on Boeing if US-EU trade talks fail, is to ensure a level playing field on tariffs between American and European aircraft maker.
If the EU imposes tariffs on Boeing jets, it will be another big setback for the American aircraft maker driven by tariffs. After US President Donald Trump imposed reciprocal tariff on April 2, the Beijing government asked Chinese airlines to refrain from procuring aircraft and related items from Boeing. Most of these aircraft were pre-ordered by Chinese airlines.
However, in order to impose tariffs, the EU would reportedly need the proposal to be approved by the majority of the EU member states. Trump has slapped EU with 25% tariffs on its steel, aluminum and cars and 10% on other commodities, including aircraft.
The development gained prominence after the EU’s trade chief, Maros Sefcovic, on May 6 said they were under no pressure to accept a tariff deal unfair to them.
European airlines operate mixed fleets of Airbus and Boeing aircraft. While Airbus is mainly preferred by these airlines for short-and medium haul markets within Europe, Boeing is used in the long-haul segment. With the EU’s dependence on Boeing aircraft, tariffs are likely to take a toll on the EU’s economy.
