The European Union was warned in May to prepare for possible U.S.-imposed tariffs on imports from the region, and now roughly $7 billion in levies could be in place before summer’s end.
The proposed tariffs are connected to a 14-year dispute over rival aircraft subsidies involving American firm Boeing Co. and European firm Airbus SE. The matter is now before a World Trade Organization arbitrator, and a decision on damages is expected later this month, although it could come in early August.
Once that decision is rendered, the Trump Administration is expected to move quickly on the imposition of tariffs on EU imports, which would be used to pay down the amount in damages owed.
The U.S. disclosed in April an initial list of proposed categories that could face tariffs, and U.S. President Donald Trump has since proposed a supplemental list of 89 additional categories. Combined, the two categories have a trade value of $21 billion.
The original list of EU imports that may see new duties includes: handbags over $20; sweaters and vests made from wool, cashmere from Kashmir goats and cotton, and apparel items, like men’s and boys’ suits and women’s and girls’ cotton pajamas. The supplemental list includes certain cheese, liquor and food items.
The EU, in turn, is said to be planning retaliatory tariffs of its own, on roughly $22 billion worth of U.S. imports.
Separate from this set of tariffs, the U.S. is still trying to resolve its trade dispute with China. And there have been rumblings that the U.S. might be targeting Vietnam. The Southeast Asian country has seen some benefit from the U.S.-China trade war as apparel firms look elsewhere–with Cambodia and Bangladesh in the running, too–for sourcing and manufacturing production.