HIGHER U.S. TARIFFS ON FRENCH, GERMAN AIRCRAFT PARTS, WINES START

The US government on Monday said it would begin collecting new duties on aircraft parts and other products from France and Germany from Tuesday (1:01 p.m. on January 12, 2021 in Manila) after failing to resolve a 16-year dispute over aircraft subsidies with the European Union (EU), Andrea Shalal and David Lawder reported for Reuters.

In a notice late on Monday, US Customs and Border Protection said the new duties would apply from 12:01 a.m. ET (0501 GMT) on Tuesday as part of the long-running battle over government subsidies to Europe’s Airbus SE and its US rival, Boeing Co.

The notice follows an announcement by the US Trade Representative's office that it would impose an additional 15% tariff on aircraft parts, including fuselage and wing assemblies, and a 25% duty on certain wines.

Talks between Washington and Brussels to end the battle stalled in the final weeks of the Trump administration, a European source familiar with the matter said.

Washington had also pressed to reach a separate solution with Britain, which has a share in Airbus, but has exited the EU.

Brussels said it would seek swift resolution of the issue with US President-elect Joe Biden, who takes office on Jan. 20.

The Biden team had no immediate comment on the tariff issue.

Airbus said USTR’s expansion of tariffs to include aircraft components made in France and Germany was “counterproductive” and would wind up harm US workers at its Mobile, Alabama site where it assembles A320 and A220 aircraft.

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