The US has threatened the EU with a raft of new tariff increases related to the Airbus subsidy case at the WTO, a move destined to further sour transatlantic economic relations as Donald Trump arrives in London for the Nato summit.
Robert Lighthizer, the US trade representative, raised the possibility of higher levies after securing Washington’s latest legal victory in the long-running dispute, with a WTO panel on Monday saying that Brussels had failed to comply with its rulings.
“Strong action is needed to convince the EU that its interest lie in eliminating these market-distorting subsidies now and in the future so that our industries can compete on a level playing field,” Mr Lighthizer said in a statement.
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