Brexit raises stakes for Britain in aircraft trade war

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Brexit raises stakes for Britain in aircraft trade war
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U.S. tariffs on European goods have plunged Britain into a trade war between the...

LONDON - U.S. tariffs on European goods have plunged Britain into a trade war between the European Union and United States just as it plans to leave the 28-nation bloc, infuriating Scotch whisky makers and handing it a dilemma over thousands of Airbus jobs.

Britain - which builds wings for Airbus jets and has been found to subsidize the jetmaker alongside France, Germany and Spain - said it was seeking confirmation from the WTO that it had obeyed its rulings and should not be subject to tariffs. “It throws up enormous uncertainty. With that realignment of allegiances going on, it is surprising that something as uniquely geographical as Scotch whisky is targeted by the Americans,” said Edward Odim, managing director of Aceo Ltd, an independent Scotch whisky supplier.

The WTO is expected to allow the EU to impose tariffs in around April at a time when Prime Minister Boris Johnson’s government expects to negotiate a trade deal with Washington. The Scottish government said U.S. tariffs on goods like whisky indicated the United Kingdom could not offset damage from Brexit by doing a trade deal with U.S. President Donald Trump.

The UK government had no comment on how Britain would handle the aircraft dispute after Brexit, but said a tariff war would be in nobody’s interest.

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