WTO to back around $7.5 billion U.S. tariffs on EU

The United States has been granted approval to impose tariffs on European Union goods with an annual trade value of around $7.5 billion after some government support for European planemaker Airbus was ruled illegal, people familiar with the matter said.

The decision brings the two trade powers closer to a tit-for-tat tariff war after 15 years in which both sides have won partial World Trade Organization backing over claims of illegal support to planemakers Airbus and its U.S. rival Boeing

Washington has drawn up a list of goods from planes to wine and handbags worth a total of $25 billion from which it could choose items to target if it goes ahead with the tariffs.

The WTO is expected to announce the findings of its arbitration tribunal on the amount of U.S. tariffs next week. Bloomberg News earlier reported they would be nearly $8 billion./investing

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