Posted on 10/03/2019 6:13:13 AM PDT by bobsunshine
Jumpin’ ju-ju bones – The Trump administration via U.S. Trade Rep Robert Lighthizer and Commerce Secretary Wilbur Ross won a massive $7.5 billion award as an outcome of the World Trade Organization agreeing with the U.S. against the EU and Airbus subsidies. The WTO arbitrators decision is final and cannot be appealed.
This win sets the stage for President Trump to deploy $7.5 billion in countervailing duties against products from the EU. Keep in mind, a final WTO ruling means the EU cannot retaliate against any WTO-authorized countermeasures. The downstream ramifications are very significant. Think about it: at 25% the U.S. could tariff $30 billion in EU goods.
"Washington, D.C.– The United States has won the largest arbitration award in World Trade Organization (WTO) history in its dispute with the European Union over illegal subsidies to Airbus. This follows four previous panel and appellate reports from 2011-2018 finding that EU subsidies to Airbus break WTO rules.
Today’s decision demonstrates that massive EU corporate welfare has cost American aerospace companies hundreds of billions of dollars in lost revenue over the nearly 15 years of litigation.
“For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers. Finally, after 15 years of litigation, the WTO has confirmed that the United States is entitled to impose countermeasures in response to the EU’s illegal subsidies,” U.S. Trade Representative Robert Lighthizer said.
(Excerpt) Read more at theconservativetreehouse.com ...
Fantastic! Remind me again, please, who pays these tariffs?
IIRC it’s 7.5 Billion PER YEAR.
And yep we can mix and match on products - so nobody ever knows who’ll be on the chopping block or when.
Uncertainty much?
Perfect timing for leverage on a reciprocal trade deal.
like
+2
heart heart
double tap
tag a friend
During the press conference yesterday Trump proudly announced this info. The Euroweenie Finnish president didn’t seem too pleased. Trump should have told this guy $7.5 billion tariff on Nokia. He could concern himself with that possibility rather than the future of American democracy.
More winning!
Tariffs are being absorbed mostly [i don’t know exact proportion] by the devaluation of the currency of the exporters [China or EU.]
That’s the main reason we don’t see uptick in prices - they have no choice but to remain competitive to sell in US market.
“Remind me again, please, who pays these tariffs?”
That would depend on which goods are hit and where they come from. Of course the goal of this is to get the EU to end their illegal subsidies to Airbus. Then no tariffs need be applied anywhere.
Get it yet?
L
In an article on Fox business, Delta says they have a big problem. They apparently are contractually obligated to purchase Air Bus planes that will now attract large tariffs and thus effectively making the planes too expensve.
Moreover, Boeing is at capacity and can not pooduce the planes on tome domestically.
Poor Delta. Poor air bus. Poor EU
And how is the EU’s suit with the WTO on Boeing going?
Tariffs are being absorbed mostly [i don’t know exact proportion] by the devaluation of the currency of the exporters [China or EU.]
That’s the main reason we don’t see uptick in prices - they have no choice but to remain competitive to sell in US market.
American consumers ultimately pay the tariffs, all tariffs.
The EU can devalue the currency thus reducing the effective price of the goods but the tariffs are payed by the American Consumer. If the sales contract is in US$ devaluation will have little effect
If the purchase cost is in devalued Euros then the price payed by the consumer may be little changed
Big win for George W. Bush !!!
He’s the one who brought the case, 15 years ago.
in a way..the subsidizing countries citizens do in the form of taxes....
Think of it this way...if the US goes full socialist...YOU will pay the cost/subsidy in the form of income tax if YOU work.....The Gov’t has NO money...they get their money from “We the People”....the working people...
Oh yeah outstanding, who really believes that would result in the E.U. paying the penalty.........anyone? Tariffs, like increased taxes and fees on businesses are simply passed on to the end consumer, so in this case Americans would get screwed twice...........outstanding you say? Make the bastards pay the penalty in full to the U.S. treasury, now that would be an outstanding result!
$7.5B tariff on Nokia wouldn’t do much. They got screwed by their time under Microsoft and are basically a dead company walking. Their share of the US Market is insignificant.
Ding! Ding! Ding! We have a winner.
I read in the newspaper this morning that tariffs were going to be imposed on single-malt whiskies. Great - I get to pay more for my Scotch!
Your not required to buy EU products. So if you want to, help them pay the tariffs with your purchase, go for it.
Or, just maybe, the EU will scrub their tariffs against us, or reduce their prices to be more competitive.
Tariffs on foreign competitors to our products is required, every other nation does it except us, were fools!
Consumer pay no tariff on all other products.
What’s funny is that people say consumers pay the price and that producers aren’t hurt.
So, you would be happy with every country in the world having a 500% tariff on all US goods, because it only hurts their people and not US producers?
I think not.
Perhaps your concern is unfounded.
After Brexit, there can and will be a new trade deal with the UK that will eliminate EU tariffs.
Fortunately, I drink Jack Daniels and have for some reason come to favor Corona cerveza. Neither is to my knowledge tariffed.
Only people who aren’t smart enough to purchase non-European products.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.