EU threatens to tax $20 billion of US goods over Boeing aid

The European Union has drawn up a list of $20 billion worth of U.S. products it could tax in an escalating feud over plane industry subsidies

BRUSSELS -- The European Union has drawn up a list of 20 billion worth of U.S. products it could tax in an escalating feud over plane industry subsidies, the EUs executive commission said Wednesday.

The commission said the EU could tax , which range from aircraft parts to frozen fish, from early next year in retaliation for U.S. financial support to Boeing that it says hurt Europes Airbus.

The extent of the EU punitive duties will depend on a ruling by the World Trade Organization. Earlier in this dispute, the EU sought permission to target 12 billion worth of U.S. products. Businesses and stakeholders have through May to give feedback on the proposed EU tariffs.

The move comes days after the U.S. said it was preparing tariffs on 11 billion worth of EU traded goods to offset EU subsidies for Airbus that hurt Boeing. of hundreds of goods includes European planes, wines, cheeses and olive oil.

EU Trade Commissioner Cecilia Malmstrom said the EU wants to avoid tit-for-tat action in the long-running dispute and that the worlds biggest trading bloc remains open for discussions with the U.S., provided these are without preconditions and aim at a fair outcome.

The EU list was made public after the WTOs dispute body confirmed on April 11 that the U.S. had not taken appropriate action to comply with subsidy rules. EU officials conceded that its likely that the duties would amount to significantly less than 20 billion.

Trade tensions between the U.S. and EU have run high since President Donald Trump slapped tariffs on European steel and aluminum imports last year.

The EU responded with tariffs on about 2.8 billion euros worth (3.4 billion) of U.S. steel, agricultural and other products, from Harley Davidson bikes to orange juice.

The U.S. and EU have since July been negotiating how to scale back the tariffs, with Trump holding out the bigger threat of slapping tariffs on European cars — a huge industry in the region — should the negotiations not yield a result.