EU set to slap $4 billion in tariffs on US wines and spirits

The EU is set to slap $4 billion in tariffs on US wines and spirits now that the WTO has granted the EU the right to put additional tariffs on the US over illegal subsidies given by the US government to Boeing.

Last year, the EU published a list of goods that would receive tariffs of up to 100%, including still and sparkling wine, rum, vodka and brandy. This is an escalation of the tariff war over illegal subsidies to airline manufacturers. Initially, the WTO allowed the US to put 25% tariffs on EU goods including wines and spirits for subsidies to Airbus. These tariffs have resulted in increased prices for wines in the US and a dramatic fall in sales from Europe to the US.