U.S. modified tariffs on EU products, response to large civil aircraft dispute

U.S. modified tariffs on EU products

The Office of the U.S. Trade Representative (USTR) announced adjustments to tariffs imposed on certain products imported from the European Union (EU) pursuant to the large civil aircraft dispute.

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The World Trade Organization in October 2019 authorized the United States to impose additional duties on approximately $7.5 billion on EU products as a result of the large civil aircraft dispute. Subsequently, in September 2020, the EU was authorized to impose tariffs affecting $4 billion in U.S. trade as a result of a related WTO dispute.  

According to a USTR release (December 30, 2020), the EU used trade data from a period when trade volumes were drastically reduced because of the economic implications of the coronavirus (COVID-19) pandemic, with the result that the EU was imposing tariffs on substantially more products than would have been covered if it had used a “normal period.” In response, the USTR announced that to maintain proportionality, the United States would change its reference period to the same period used by the EU, but would adjust the product coverage by less than the full amount that could be justified using the EU’s chosen time period.  

The products subject to the additional U.S. tariffs include:

  • Aircraft manufacturing parts from France and Germany
  • Certain non-sparkling wine from France and Germany
  • Certain cognac and other grape brandies from France and Germany


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

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John L. McLoughlin
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Andy Siciliano
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E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
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E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
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E: labad@kpmg.com

Irina Vaysfeld
Principal
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E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
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E: aahanchian@kpmg.com

Christopher Young
Principal
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E: christopheryoung@kpmg.com

Gisele Belotto
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E: gbelotto@kpmg.com

George Zaharatos
Principal
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E: gzaharatos@kpmg.com

Andy Doornaert
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E: adoornaert@kpmg.com

Jessica Libby
Managing Director
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E: jlibby@kpmg.com

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