With the European Union drafting its list of retailiatory tariffs under the Boeing dispute and the U.S. evaluating its next steps in its Airbus retailiatory tariffs, National Association of Beverage Importers President Robert M. Tobiassen suggested a way forward for the U.S. and European Union in the Airbus dispute: Reduce Airbus tariffs across the board by the amount of Boeing tariffs, impose no new tariffs, and focus continuing tariffs on aircraft which are at the core of this trade war.
Except for tariffs on aircraft, NABI’s proposal would have the EU not impose Boeing tariffs and the U.S. to reduce its existing Airbus tariffs on non-aircraft goods by 60-70% across the board.
Stakeholders from both the U.S. and EU will still advocate for a settlement because at any point in time, either party may decide to reimpose (in the case of the US) or impose from the published list (in the case of the EU). “This is the ‘Sword of Damocles’ held over each party’s head” said Tobiassen.