Boeing, still mired in the aftermath of the 737 MAX debacle—including Congressional investigations into the company’s actions in the certification of the new model and the economic blow related to coronavirus pandemic—faces another bad news story. The EU yesterday slapped U.S. manufacturers with up to $4 billion in tariffs as a result of what the World Trade Organization (WTO) determined were past United States’ subsidies to the American plane maker. While the tariffs can be levied against purchases of Boeing aircraft, they can also be tacked on to prices for other American goods, including agricultural and tech products.
It hasn’t been a one-sided affair. In 2019, the U.S. assessed tariffs on EU products, including the unusual pairing of planes and cheese, after the WTO found that the U.S. was within its rights to levy tariffs of up to $7.5 billion against EU producers, including its arch-rival Airbus.
Boeing is on the verge of reintroducing the 737 Max to commercial service pending the final approval from the FAA of hardware, software and training fixes to the aircraft and its training systems.