The U.S. administration said earlier today it would begin collecting taxes and duties on goods such as aircraft parts and other products from France and Germany starting Tuesday after a dispute between the U.S. and the European Union failed to resolve after 16 years.
U.S. Customs reported that the matter would come into force at 12.01 am ET time after the aircraft subsidy dispute did not reach any meeting point. Follow-up notice was also announced by the U.S. Trade Representative office that the Department will impose an additional 15% tariff on aircraft parts, including aircraft body and wings, and a 25% duty on certain wines.
Discussions between Washington and Brussels to close the gap have stalled in recent weeks of the Trump administration. Washington on the other hand has also been pushing for a separate settlement with the EU.
The EU has commented that it will try to find an immediate solution with US President Joe Biden, who will take over the presidency on January 20.
Analysts are of the opinion that the imposition of this tariff will increase the burden on consumers due to the increase in prices in goods that are subject to additional tariffs. In addition, it can also have an impact on the economy with a growing pandemic.
