US-EU trade dispute: US slaps tariffs on wine and cognac

The US has added tariffs on certain cognac and other grape brandies from France and Germany.
The US has added tariffs on certain cognac and other grape brandies from France and Germany.

The US will impose new import taxes on some French and German goods as part of a long-running trade dispute.

On Wednesday it announced tariffs on aircraft manufacturing parts along with certain non-sparkling wine, cognac and other grape brandies.

These will be added to the list of products taxed since 2019, the US Trade Representative said in a statement.

The EU and US have fallen out over subsidies for aircraft manufacturers Airbus and Boeing.

The tariffs are a result of a 16-year feud over state support provided to US-based plane-maker Boeing and European rival Airbus.

The latest retaliation sees new tariffs imposed by the US on "aircraft manufacturing parts from France and Germany, certain non-sparkling wine from France and Germany, and certain cognac and other grape brandies from France and Germany".

In 2019, the World Trade Organisation (WTO) said the US was justified to retaliate against the EU on $7.5bn (£5.4bn) worth of goods for support granted to Airbus, prompting the US to place tariffs on items such as certain whiskeys, wines and cheese.

The EU was authorised this year by the WTO to levy additional customs duties on American products.

In recent months, both sides have taken steps they say correct the offending plane-making subsidies but little progress has been made towards a settlement.

Tensions between the two trading blocs escalated further this week after the EU and China signed a long-awaited investment treaty that aims to open up lucrative new corporate opportunities.

The US and China have been locked in their own trade war since 2018 which has intensified under Donald Trump's presidency.