New U.S. tariffs on EU goods kick in

Wasting no time, the U.S. government said it would begin collecting new duties on aircraft parts and other products from France and Germany from Tuesday (Jan 12).

That's after it failed to resolve a 16-year dispute over aircraft subsidies with the European Union.

In a notice to shippers late on Monday (Jan 11), U.S. Customs and Border Protection said the new duties would apply from Tuesday.

It's part of a long-running battle over government subsidies to Europe's Airbus and its U.S. rival Boeing.

With both having won cases at the World Trade Organization in recent years.

The U.S. will impose an additional 15% tariff on aircraft parts, including fuselage and wing assemblies.

Plus a 25% duty on certain wines.

A European source familiar with the matter said talks between the two sides stalled in the final weeks of the Trump administration.

Brussels said it would seek swift resolution of the issue with U.S. President-elect Joe Biden when he takes office later in the month.

Although the Biden team had no immediate comment on the tariff issue.

Airbus said the expansion of tariffs to include aircraft components made in France and Germany was "counterproductive" as it would also harm U.S. workers at its assemblies there.

Some alcohol from the Airbus-producing nations - France, Germany, Spain and Britain - had already been subject to tariffs.

But new varieties are now affected, and the French wine exporters' federation called it a "sledgehammer" blow.