How does this ruling compare to the US tariffs on EU goods over Airbus?

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WTO Authorises EU Tariffs on US$4 Billion of US Goods, Mirroring Previous US Action on EU

The World Trade Organisation (WTO) has authorised the European Union to impose tariffs on approximately US$4 billion worth of United States goods. This retaliatory measure is in response to subsidies previously granted to the US planemaker Boeing Co. This ruling follows a similar WTO decision from the previous year, which permitted the United States to impose tariffs amounting to US$7.5 billion on goods from the EU, in retaliation for support provided to Airbus.
EU Authorised to Impose Tariffs on US Goods

The WTO has granted the European Union the authority to levy tariffs on US$4 billion of American products. This authorisation serves as a direct response to subsidies that have been provided to Boeing. The decision by WTO arbitrators, which will be formally published in the coming weeks, allows the EU to counter the competitive advantages gained by Boeing through these state subsidies.
Retaliation for Boeing Subsidies

These authorised tariffs are specifically designed to retaliate against subsidies provided to Boeing. The WTO's finding supports the EU's position that these subsidies have caused demonstrable harm, necessitating a compensatory trade measure. This ruling is a significant development in the long-standing dispute over state aid to aircraft manufacturers.
Comparison to US Tariffs on EU Goods

The current WTO authorisation for the EU to impose tariffs on US$4 billion of goods is directly comparable to a previous WTO ruling in October 2019. In that instance, the WTO permitted the United States to impose tariffs on US$7.5 billion of EU goods. Those US tariffs were a direct consequence of WTO findings regarding illegal subsidies provided to the European aircraft manufacturer Airbus.
EU's Potential Total Tariffs

While the current authorisation is for US$4 billion, the EU is expected to argue that its total retaliatory capacity is US$8.2 billion. This figure includes separate, previously unused tariffs that the EU has the authority to implement. This suggests a broader scope of potential punitive measures available to the EU in its trade dispute with the United States concerning aircraft subsidies.

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How does this ruling compare to the US tariffs on EU goods over Airbus?

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