Tariffs The World Trade Organization (WTO) recently ruled against the European Union (EU) in a long-standing court battle on “launch subsidies” for the development of civilian Airbus aircraft. The United States is authorized to impose tariffs on $7.5 billion worth of EU goods entering the U.S. beginning on October 18.

Earlier this year, AEM provided comments to both the European Commission and the office of United States Trade Representative (USTR) Robert Lighthizer urging both governments to avoid placing tariffs on heavy equipment and related elements.

Last week, USTR published their Final Product List subjected to tariffs on the Section 301 Investigation- EU Large Civil Aircraft.

AEM advises all member companies conducting business with the EU to review the list in its entirety. Specifically, AEM would like to highlight the following industry products subject to tariffs beginning October 18:

Section 3 – Products of Germany described below are subject to additional import duties of 25 percent ad valorem:

  • 8201.40.60 Axes, bill hooks and similar hewing tools (o/than machetes), and base metal parts thereof
  • 8203.20.20 Base metal tweezers
  • 8203.20.60 Pliers (including cutting pliers but not slip joint pliers), pincers and similar tools
  • 8203.30.00 Metal cutting shears and similar tools, and base metal parts thereof
  • 8203.40.60 Pipe cutters, bolt cutters, perforating punches and similar tools, nesoi, and base metal parts thereof
  • 8205.40.00 Screwdrivers and base metal parts thereof
  • 8211.93.00 Knives having other than fixed blades
  • 8211.94.50 Base metal blades for knives having other than fixed blades
  • 8467.19.10 Tools for working in the hand, pneumatic, other than rotary type, suitable for metal working
  • 8467.19.50 Tools for working in the hand, pneumatic, other than rotary type, other than suitable for metal working
  • 8468.80.10 Machinery and apparatus, hand-directed or -controlled, used for soldering, brazing or welding, not gas-operated
  • 8468.90.10 Parts of hand-directed or -controlled machinery, apparatus and appliances used for soldering, brazing, welding or tempering
  • 8505.11.00 Permanent magnets and articles intended to become permanent magnets after magnetization, of metal 8514.20.40 Industrial or laboratory microwave ovens for making hot drinks or for cooking or heating food
  • 9002.11.90 Objective lenses and parts & access. thereof, for cameras, projectors, or photographic enlargers or reducers, except projection, nesoi

Section 4 – Products of Germany or the United Kingdom described below are subject to additional import duties of 25 percent ad valorem:

  • 8429.52.10 Self-propelled backhoes, shovels, clamshells and draglines with a 360 degree revolving superstructure
  • 8429.52.50 Self-propelled machinery with a 360 degree revolving superstructure, other than backhoes, shovels, clamshells and draglines
  • 8467.29.00 Electromechanical tools for working in the hand, other than drills or saws, with self-contained electric motor

The vast majority of EU products targeted with tariffs are agricultural products including cheese, fruits, pork, olive oil, as well as clothing. Early next year the WTO is expected to rule on a case against Boeing which could result in the EU being authorized to place tariffs of its own on U.S. products. 

AEM is engaging with the Congress and the Trump administration and will continue to remind them that American businesses and consumers will bear the brunt of any trade war between the United States and the European Union.

To learn more about the growing trade tensions between the United States and Europe, please contact AEM’s Director, Government Affairs, Alex Russ at aruss@aem.org or (202) 898-9006.

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