NDN Statement On Trump's Threatened European Tariffs

In light of this week’s WTO ruling on European subsidies to Airbus and the Administration’s announcement of new tariffs on $7.5 billion of EU imports effective October 18th, NDN President Simon Rosenberg has released the following statement:

“NDN welcomes this week’s WTO ruling against illegal state aid to Airbus, and hopes that this decision can help bring an end to the decades-long Airbus/Boeing conflict. However, NDN is very concerned by the Administration’s announcement of new tariffs on the EU, and urges the Administration to drop the tariff threat before new escalation occurs between the US and the Europeans.

The US also provides illegal state aid to Boeing, a case that will be ruled upon by the WTO in coming months, and the WTO in this week’s ruling strongly hinted that they would deliver the same result to the US, stating that: “The WTO has already found that the US failed to address illegal subsidies causing harm to Airbus. This will provide the EU with ground to claim countermeasures on US products at a level that could exceed US sanctions.”

As a result, NDN hopes that the Trump administration will now forgo its announced tariffs and enter direct negotiations with the EU to reduce state subsidies to both Airbus and Boeing. Anything less can only be seen as a reckless escalation of trade tensions by President Trump that isn’t intended to solve the Airbus/Boeing conflict. With the global economy already suffering immensely from trade tensions, and US manufacturing contracting at its worst level since 2009, a new trade war between the US and EU will only cause greater economic pain both at home and abroad.

Finally, Speaker Pelosi should make clear to the President that advancing the trade pact with Mexico and Canada will be far easier if the Administration lessens trade tensions with Europe and China.  Congress cannot appear to be looking the other way when it comes to the President’s reckless trade policies.  An escalating trade war with Europe will make it much harder to sell the propriety of the President’s trade policies to the public, and to wavering Democrats.”