⁍ The European Union won permission on Tuesday to impose tariffs on $4 billion of U.S. goods in retaliation against subsidies for planemaker Boeing.

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⁍ The tariff award threatens to stoke transatlantic trade tensions just three weeks ahead of the U.S. presidential election.

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⁍ Both the United States and the EU have signaled interest in settling the dispute over subsidies each provided to their respective planemakers.

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– The European Union has been granted permission to impose tariffs on $4 billion of US goods in retaliation against subsidies for planemaker Boeing. The tariff award, which confirms a decision first reported by Reuters on Sept 30, threatens to stoke transatlantic trade tensions just three weeks ahead of the US presidential election. However, negotiators on both sides say it could also lead at last to discussions to resolve a 16-year legal battle. Both the United States and the EU have signaled interest in settling the dispute over subsidies each provided to their respective planemakers, Boeing and Airbus AIR.PA, while accusing the other of refusing to talk seriously. Tuesday’s decision, delayed by the COVID-19 pandemic, follows a WTO ruling last year allowing Washington to impose tariffs on $7.5 billion in EU goods over state support for Airbus, which has sites in Britain, France, Germany, and Spain. Combined, the two cases represent the world’s largest ever corporate trade dispute. The $4 billion tariff window means European airlines that import Boeing jets could have to pay tariffs expected to match US border taxes on Europe-built Airbus jets, currently 15%. But Boeing’s top European customer Ryanair, RYA, has called on Boeing to pay the tariffs and is expected to use this as leverage in negotiations to buy more of its grounded 737 MAX. The European Commission said it would pull back from imposing tariffs if Washington withdrew tariffs on European goods such as wine and whisky.