The European Union (EU) could retaliate by slapping tariffs on the US goods unless America removes duties imposed over Airbus subsidies, the newly appointed Trade Commissioner and European Commission Executive Vice-President Valdis Dombrovskis said in a Bloomberg Television interview on Tuesday.
Key quotes
“We will if we will have to, but our preference would be to have an agreement with the U.S. in between where they also withdraw their tariffs.”
“Any agreement between the EU and US on a subsidies discipline covering aircraft manufacturers could have a wider geographical impact by also influencing “other competitors which may emerge in this area of civil aviation.”
The US imposed $7.5 billion of European goods with duties last October in WTO-authorized retaliation over unlawful support for Airbus.
Market implications
The above remarks added to the downbeat tone seen around the euro, as the dollar’s haven demand dominated across the board amid broad risk-aversion.
EUR/USD was last seen trading at 1.1775, modestly flat on the day.
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