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The U.S. trade war with China has just ceased, and the U.S. government on Monday stepped up pressure on Europe over a long-standing dispute over airplane subsidies, threatening to impose tariffs on an additional $4 billion worth of European products.
The U.S. Office of Trade Representatives (USTR) has proposed a list of additional products that could be subject to tariffs, including olives, Italian cheese and Scotch whiskey, after listing in April that $21 billion worth of European products could face tariffs.
USTR said that according to public opinion, 89 additional tariff subcategories were added to the initial list, including various metals, but no further explanation was given. More than 40 people testified at public hearings on May 15 and 16 about products included in the initial list.
The United States and the European Union have been arguing about subsidies for American Boeing (BA.N) and European Airbus (AIR.PA) for nearly 15 years at the World Trade Organization (WTO). The two sides are confronting each other and threatening to impose tariffs on airplanes, tractors and food.
In two of the world's largest corporate trade disputes, the WTO recognized that the two aircraft manufacturers received billions of dollars in harmful subsidies.
The WTO is expected to rule on U.S. sanctions requests in the summer, but it may also be postponed to September.
USTR said it would hold a hearing on the list of additional products to be taxed on August 5.
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