In response to subsidies that support Airbus, the US is considering imposing tariffs on an estimated $11bn (£8.4bn) worth of goods from the EU.
The subsidies would have a negative effect on the United States according to the World Trade Organization (WTO).
The US Trade Representative also said that the products that could be hit by tariffs include Aircraft and cheese.
The European Union, however, has said that the figure of $11bn was “greatly exaggerated”.
This decision to impose tariffs on European Union products would mark an escalation in trade tensions between the United States and the European Union.
The United States Trade Representative said that the value of goods targeted with tariffs was subject to negotiation at the World Trade Organization, which is expected in a few months.
The United Trade Representative Robert Lighthizer said, “This case has been in litigation for 14 years, and the time has come for action. The administration is preparing to respond immediately when the WTO issues its finding on the value of US countermeasures.”
“Our ultimate goal is to reach an agreement with the EU to end all WTO-inconsistent subsidies to large civil aircraft. When the EU ends these harmful subsidies, the additional US duties imposed in response can be lifted.”
A list of goods, covering a whole lot of items, has been released for public consultation. For example, the following are being considered for additional tariffs if the products come from any of the 28 European Union states.
Salmon fillets, fresh or chilled
Cheese, including Cheddar, Roquefort, Stilton, Gruyere and Pecorino
Lemons fresh or dried
Virgin olive oil
Marsala wine
Cashmere sweaters, pullovers and similar
Ceramic household steins with pewter lids
Motorcycles with an engine size of between 500cc and 700cc
Wall clocks, not electrically operated, designed to operate over 47 hours without rewinding
In addition, additional import duties are also being considered on certain goods if they are made in France, Germany, Spain or the UK. They include:
Helicopters
Undercarriages for use in new civil aircraft
Fuselages for use in new civil aeroplanes
The United States is in the process of negotiating a trade deal with China, but counterstroke tariffs imposed by the two countries have already told on the global economy this year.