EU weighs to hit US products with tariffs approved by WTO until after US election- Bloomberg

Having finally won the long battled trade war with the US, the European Union (EU) can hold off the decision to levy tariffs worth $4 billion of American goods until after the U.S. presidential election next month, per the Bloomberg.

The news relied on three anonymous EU officials familiar with the thinking while confirming that the award is lower than the $7.5 billion judgment granted to the U.S. last year in a parallel dispute against Boeing’s European rival, Airbus.

Additional details of the news suggest that the bloc has already prepared the list of goods to bear the extra tariff but is waiting for the presidential election, November 03, to see if there is any scope of trade negotiations.

Comments from the EU’s trade chief, Valdis Dombrovskis, via Twitter, also suggest the region’s likely shift in trade relations with the US if Biden wins. The tweet said, the EU will “immediately re-engage with the U.S. in a positive and constructive manner to decide on next steps. Our strong preference is for a negotiated settlement. Otherwise, we will be forced to defend our interests and respond in a proportionate way.”

Market implications

Such news can help improve market sentiment and plays its role currently. As a result, Futures in Europe and the US are posting gains of over 0.30% by the press time of pre-European opening on Wednesday.