WASHINGTON: The United States imposed tariffs on a record $7.5-billion worth of European Union goods on Friday, despite threats of retaliation, with Airbus, French wine and Scottish whiskies among the high-profile targets.

The WTO-endorsed on­­slaught from US President Donald Trump also comes as Washington is mired in a trade war with China and could risk destabilizing the global economy further.

In Washington, French Economy Minister Bruno Le Maire lambasted the US move, calling it a “hostile act” from an ally that, failing a negotiated resolution, would invite retaliation which could further slow the world economy.

“This is a hostile act between allies,” Le Maire told reporters on the sidelines of the annual meetings of the World Bank and International Monetary Fund.

“With a slowing global economy, it would be irresponsible to add tariffs to tariffs and a US-European trade war to the existing US-China trade war.” “We don’t want to negotiate with a gun (to) our head. Because when you have a gun to your head, you don’t have any other choice but to retaliate,” he added.

The tariffs, which took effect just after midnight in Washington (0401 GMT), came after talks between European officials and US trade representatives failed to win a last-minute reprieve.

In the line of fire are civilian aircraft from Britain, France, Germany and Spain — the countries that formed Airbus — which will now cost 10 percent more when imported to the US.

But the tariffs also target consumer products such as French wine, which Trump had vowed to attack in recent months. Wine from France, Spain and Germany will now face 25 percent tariffs.

Le Maire was due to meet US Trade Representative Robert Lighthizer later on Friday.

The Europeans advocate negotiation over conflict and expect the World Trade Organisation next year will authorize Europe to retaliate against the United States for subsidising Boeing.

But EU officials had already offered in July to call a truce on subsidies for plane makers, in which both sides would admit fault and agree to curtail state aid -- to no avail. The two sides have been involved in a row over the subsidies for 15 years.

The tariffs kick in just days after the United States was given the formal go-ahead by the World Trade Organisation.

Published in Dawn, October 19th, 2019

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