The Trump administration is threatening to undermine the U.S.-EU tariff truce after the European Investment Bank granted Airbus a $3.4 billion loan in June, its largest ever. U.S. Trade Representative Jamieson Greer is seeking more details and said the financing could violate the 2021 agreement suspending tariffs on roughly $11.5 billion of goods. The dispute also puts the broader transatlantic trade deal, which sets a 15% tariff rate, at risk and could raise U.S. tariffs to 30% while triggering EU retaliation against more than $100 billion in American goods. The aviation conflict dates to 1992, when Washington and Brussels permitted certain aircraft-production subsidies before the WTO found that support received by both Airbus and Boeing was partly unlawful. Whether hostilities resume will depend in part on disclosures from the European Investment Bank about the loan’s terms and use.
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