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Scotch whiskey makers may be in need of a quick drink this morning, after hopes of a breakthrough between the United States and Europe on tariffs have faded.
Overnight, the U.S. government announced it would maintain 15% tariffs on Airbus planes in an ongoing dispute over aircraft subsidies. It also maintains tariffs of 25% on a range of European products announced last October, including wine, single malt whiskey, olive oil and cheese.
Reuters has the details:
US Trade Representative Robert Lighthizer said the EU had failed to take the necessary steps to comply with World Trade Organization rulings and that Washington would launch a new process to try to find a long term solution.Lighthizer’s office said it would amend its list of $ 7.5 billion of affected European products to remove certain goods from Greece and Britain, adding an equivalent amount of goods from Germany and France.
“The EU and member states have failed to take the necessary steps to comply with WTO rulings.
The United States, however, is determined to find a long-term solution to this dispute.
The line dates back to 2004 and focuses on the aircraft subsidies paid by the EU to Airbus that have been declared illegal by the World Trade Organization.
Last month, Airbus announced that it would end this system of financial support from France and Spain, to appease the United States.
America, however, is still unhappy – even if a transatlantic trade war is hardly what the global economy needs right now.
But at least the dispute doesn’t escalate any further. The United States resisted the addition of new tariffs on vodka, gin and beer as they had threatened …
The EU has been cautious in saying:
“The Commission recognizes the decision of the United States not to aggravate the ongoing air dispute by increasing tariffs on European products.”
But failure to resolve the ongoing dispute won’t encourage investors, with European stock markets expected to dip a bit this morning:
Otherwise, it looks like a quiet day until the latest weekly US unemployment figures are released.
Economists predict a slight drop in the number of Americans filing new jobless claims, to around 1.1 million from nearly 1.2 million last week. That would still be terribly high, showing the continued economic damage from the pandemic.
1:30 p.m. BST: US weekly jobless claims