The European Union will impose tariffs on up to US$4 billion of U.S. imports in retaliation for U.S. subsidies for Boeing , but said on Monday it was hopeful of an improvement in trade ties under U.S. President-elect Joe Biden.
This means the European Union is moving forward with a plan to hit $4 billion of American goods with tariffs, reacting to the announced US subsidies for Boeing. The taxes, authorised by the World Trade Organization last month, go into effect on Tuesday and affect items such as tractors, ketchup and orange juice.
According to EU officials, representatives still hope to settle the fight, which saw the US impose tariffs on European products last year. A trade official said Joe Biden's election could help "reboot" talks.
EU Trade Commissioner Valdis Dombrovskis said the EU wanted to see both sides remove their respective tariffs, which are a result of a long-running feud over state support provided to plane-maker Boeing and European rival Airbus.
US aircraft imported to Europe will face tariffs of 15%. The EU said it would apply border taxes of 25% to a list of other items, which includes tractors, tobacco ketchup, orange juice, cheddar cheese and sweet potatoes.