Airbus and the European Union have not fully cured illegal subsidies on the A350... A380
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December 7, 2019 - by Scott Hamilton for leehamnews.com
The Trump Administration Tuesday threatened to increase the tariffs on European goods after a World Trade Organization (WTO) compliance panel concluded Airbus and the European Union have not fully cured illegal subsidies on the A350 and some residual "harm" to Boeing remains as the A380 program winds down.
The EU and Airbus criticized the conclusions as faulty.
The EU is expected to appeal by next Wednesday.
The Administration already imposed a 10% tax on the A320 family, the A330neo and A350 imported into the US.
So far, the A320 family assembled at Airbus' Mobile (AL) plant are exempt.
US airlines and lessors whose lessees are US carriers are required to pay the tax. Airbus and its customers are working the problem behind the scenes.
- The EU awaits a WTO arbitration decision next spring and is prepared to retaliate with taxes on Boeing airplanes.
- Airbus believes it will be in a stronger position than Boeing once the WTO acts.
- US customers are liable for tax.
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