US raises tariffs on EU aircraft to 15%

Washington: The US said on Friday it will increase the tariff rate imposed on aircraft imported from the European Union to 15% from 10% on March 18. The move is part of a long-running spat in which the US has sought to penalise the EU for offering illegal subsidies to Airbus SE that harmed American aircraft maker Boeing.

The US Trade Representative said in the statement on Friday that it is leaving duties on certain other European goods such as Scotch and French wine at 25% and will make minor changes to the previously released product list.

The US is deploying a trade tactic known as carousel retaliation, whereby governments periodically shift duties and tariff rates on different groups of goods in order to increase pain and uncertainty for exporters.