When the United States won a long-standing lawsuit against the European Union for providing illegal subsidies to European airline manufacturer Airbus last year, the immediate ripple effect was an alcohol tariff war between the two sides.
The World Trade Organization (WTO) awarded the United States a $7.5 billion award. It is the largest arbitration decision in WTO history.
Consequentially, the ruling also opened the door for the U.S. to levy WTO-approved tariffs on certain EU goods, according to United States Trade Representative (USTR) Robert Lighthizer. After the court case, the U.S. implemented a 25% trade tariff on a variety of EU products, including alcoholic beverages made in France, Germany, Spain and the U.K.
READ MORE: Quarterly Report 2020: Tariffs and International Tr…