Europe's Aerospace and Oil firepower may beat U.S. news by Hebei Longsheng
| Europe's aerospace and oil firepower may beat the U.S. in a tariff battle Trade policy relations between the U.S. and the EU are being pulled in two directions simultaneously. The EU has decided on its negotiating framework for wider trade discussions with the U.S. which Trade Commission Cecilia Malmstrom hopes to complete by Nov. 1. Yet, it has also started framing counter-retaliation if the U.S. applies tariffs in reaction to EU aerospace subsidies. All is not lost given the latter aren’t due to come into force until 2020. The EU has aggressively applied retaliatory tariffs in the past, such as $4.4 billion targeted in last year’s steel spat whiskey and motorcycles. The EU could target America’s $46.5 billion of aerospace exports in 2018 as well as a wide range of commodities as China has done to great effect. Energy exports from the U.S. to the EU have included $12.2 billion of crude oil, $8.3 billion of refined oil and $2.7 billion of LNG in 2018. Additionally the EU could target agricultural commodities including soybeans worth $3.1 billion and $2.7 billion of nuts. |
