World Trade Organization (WTO)

U.S. to implement new EU tariffs on cheese, whiskey, other goods

In this image, two men wearing shirts with the Airbus logo work on assembling an Airbus plane
Technicians work on a fuselage segment in the new structural assembly of the Airbus A320 family at the Airbus plant in Germany. Photo: Christian Charisius/picture alliance via Getty Images

The U.S. says it will implement a 10% tariff on EU aircraft and a 25% tax on "agricultural and other products" starting Oct. 18, following a World Trade Organization's ruling allowing the U.S. to impose up to $7.5 billion in tariffs on European products each year.

The big picture: The United States Trade Representative (USTR) and the EU have each drafted lists of at least $20 billion worth of each other's products to tax in response to this WTO decision. Meanwhile, tariffs from the U.S. trade war with China are estimated to cost U.S. households $2,000 each by next year, per the National Foundation for American Policy.

Expert Voices

Critical window is about to close for U.S.-China trade deal

Illustration of the hands of a clock getting closer to midnight with a star beneath
Illustration: Sarah Grillo/Axios

The resumption of U.S.-China trade negotiations in October, after an acrimonious summer, is likely to offer the last chance for a breakthrough before both sides flip to a more hardline nationalist Plan B in 2020.

The big picture: The protracted dispute is impacting growth, business confidence and economic uncertainty in both countries. A 2019 deal remains probable and in each leader’s best interests, as President Trump looks to his 2020 campaign amid a softening economy and Chinese President Xi Jinping faces political liabilities from slowing growth.