U.S. imposes record $7.5 billion tariffs on EU imports

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Earlier this month, the World Trade Organization (WTO) determined that Washington could impose tariffs on European Union products worth $7.5 billion.

The tariffs in question were introduced as a punitive measure for what the WTO determined to be illegal subsidies to the aerospace company Airbus, which had adverse effects on U.S. rival Boeing.

On Friday, the U.S. complied with the ruling and imposed tariffs on EU goods valued at $7.5 billion targeting the aeronautical and agricultural sectors and covering such products as cheese, Italian and French wine, reports AFP agency.

The European Union has repeatedly warned Washington that it would apply equivalent measures if the US proceeded with tariff imposition.

The US Trade Representative’s office announced that it would introduce such tariffs on European products following the WTO ruling, ending a trade dispute that began in 2004.

EU officials, on the other hand, argued that Boeing benefited from similar subsidies. However, the WTO ruling does not limit US tariffs to the aeronautical sector but may cover other sectors.

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Following the World Trade Organization’s decision, the US decided to increase import duties on EU products by 10% in the aeronautics sector and by 25% in the agricultural sector.

In 2005, the EU accused Boeing of receiving $19.1 billion in illegal subsidies from various US government agencies between 1989 and 2006.

Meanwhile, while the U.S. has long been pushing European allies to stop buying Russian gas, some US policies have boosted Russia’s energy sector.

According to National Interest, the strengthening of the Russian economy was particularly influenced by US sanctions against Venezuela and Iran.

Since oil produced in these two countries is similar in many respects, the former partners of Caracas and Tara have switched to Russian oil following the introduction of restrictive measures.

Another inadvertent aid to Russia was the trade war between China and the United States, which allowed Russian energy companies to position themselves in the Chinese market, according to the magazine.

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