Tuesday, 17 March 2020

Higher US tariffs on Airbus aircraft set to come in to force tonight.

In a cruel and vicious attack on Europe, the United States is expected to proceed with a 50% increase in US tariffs on Airbus planes on Wednesday, officials have confirmed.  The tariff will further deepen the financial burden on US carriers, that are already seeking billions of dollars in state aid. 

Trump's government is scheduled to increase to from 10% to 15% at 12:01 am Wednesday, as Washington pressures the EU to comply with a World Trade Organization ruling on illegal aircraft subsidies, despite giving similar subsidies and tax breaks to Boeing. The WTO is expected to rule on the EU legal challenge over those subsidies, later this spring.

Various officials at the EU has said there had been no indication from the Trump administration that they might delay imposing such tariffs because of the global coronavirus, regardless of the promise of the G7 to cooperate in these times of crisis. 

According to Reuters, an Airbus spokesperson said there was no sign of a reprieve for US airlines,  for they are the ones that would have to pay the excess tariff at a time when travel bans and drop in passengers have left many airlines on the very brink of collapse. 

These tariffs do not affect aircraft built at the Mobile, Alabama, Airbus factory tat currently produces between 6 and 7 A320 aircraft a month. 

Recommended for you...

No comments: