Tariffs and World Trade

[Easy-X]

So I was reading this:

https://www.bbc.co.uk/news/business-49906815

tl;dr Europe "illegally" subsidises AirBus. US get antsy and ask the WTO if they can impose tariffs on Euro imports. WTO agrees. Europe responds by considering imposing tariffs on US goods...

So what's the point? As far as I can tell the logical conclusion is that trade stops/slows between the US & EU for certain things but all the while the two carry on trading with rest of the world. Can't see what has been gained
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[mentalboy]

You would have thought that at the current rate of bits falling off Boeings that the US wouldn't want to draw attention to anything that involves aeronautics at the moment!

This is a pre-Trump case, just coincidence that it comes on top of the Orange one's rash of tariff hikes. Simply put, the WTO upheld the US case that Airbus had received government assistance putting it at an advantage over it's competitors (in this case 'not-so-flighty' Boeing) and agreed to the imposition of tariffs to make up for the loss of revenue - presumably to the coffers of the IRS as tariffs won't do Boeing much good.

As an interesting aside, Airbus was a much hailed Euro project that made much of it's cooperation from Euro countries, not much was made of the fact that quite a few bits were/are sourced from the US.
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Make mine a Corona.

[Im-a-Ridah]

It's true (AFAIK) that Airbus get subsidies from the EU, although the US also subsidises Boeing through military aircraft contracts (i.e buys 100 Boeing tanker planes). That said, so do European countries (but not the EU itself, obviously).

And yes, Airbus makes a lot of its jets in the US, there might even be an assembly line there, and also sources a lot of parts from Japan and maybe China* too. Boeing plays the same game with the majority of the jet in some cases I believe coming from Japan. For both of them its a cases of European or America respectively when subsidies are given out, and lowest bidder/country of customer the rest of the time!

The UK is somewhat fortunate in that it makes a lot of landing gear, engines and avionics which is where the real money and jobs are. The body/wings are basically just metal bashing in comparison.

[MCN]

Trade Tariff = Cartelling at a Government Level.

Bastirts...

Cum on the Revolution. 😠😠😠
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Disclaimer: The comments above may be predicted text and not necessarily the opinion of MCN.

[Easy-X]

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[Polarbear]

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[Im-a-Ridah]

[Ribenapigeon]

People might be more pro-Europe if it had done the same for our shipyards as it did for airbus.