— This is the script of CNBC's news report for China's CCTV on September 27, 2019, Friday.
The United States and the European Union have been locked in a 15-year battle at the world trade organization over alleged illegal subsidies to aircraft manufacturers. In May, WTO ruled the European Union and its 4 member states to execute the verdict that they didn't completely followed before, stopping illegally subside Airbus. But this is not an end of dispute but a start of new conflict.
The U.S. has been granted approval by the WTO to impose tariffs on European Union goods with billions of dollars annual trade value after some government support for Airbus was ruled illegal, and the specific number will be released next week, according to some U.S. reports. Cited Reuters reports, it would be $7.5b, and Bloomberg said it would be around $8b, which are lower than $11.2b that the U.S. requested before, but still with large scale.
Currently, similar lawsuit against the U.S. that initialed by the EU is in process, but it probably wouldn't come with a result that fast, so this gives the United States about half a year's head start. EU of course would not leave it at that, it is "brewing" the fight back plan, imposing retaliatory duty to the U.S., according to some reports.
The total value of the goods to be tariffed could exceed $4b, but it has to get approval from the EU commission. According to Reuters, there is at least one EU commissioner against that, because he/she doesn't want to escalate the trade tension between EU and U.S.
Ursula von der Leyen, President of the European Commission, has announced the new panel list of commissions. Phil Hogan will serve as European Commissioner for Trade.
Early this month, Hogan said EU tried to persuade the U.S. president Trump to give up some undaunted trade policy, and let him realizes that what he did is wrong, and an escalating trade friction can only beneficial to competitors.
New commissioners will take office on Nov 1, how will they deal with trade dispute with the U.S. draws attention from the markets.