US set to quickly widen trade war with EU tariffs after WTO ruling

• The United States won approval Wednesday to tax $7.5 billion in European goods over illegal EU subsidies for aircraft maker Airbus.
• The EU is expected to respond with taxes of its own on US products, after the global trade body found US aircraft maker Boeing Co also received illegal subsidies.

WASHINGTON: The United States' top trade body is likely to release a list of European goods subject to new tariffs Wednesday afternoon, after the World Trade Organization's landmark ruling on illegal aircraft subsidies, industry sources said.

Three industry sources briefed on the United States Trade Representative's plans said they expected the agency to release a list of European products that would be taxed at 4 p.m. EDT (2000 GMT). The USTR submitted a request Wednesday to the WTO to convene a fast-track meeting of its dispute settlement body to adopt these tariffs, two US-based trade sources said.

Wednesday's request means the WTO body could meet as soon as Oct. 14.

The United States won approval Wednesday to tax $7.5 billion in European goods over illegal EU subsidies for aircraft maker Airbus. The EU is expected to respond with taxes of its own on US products, after the global trade body found US aircraft maker Boeing Co also received illegal subsidies.

Lobbying groups, trade organizations and congressional staff in Washington were scrambling Wednesday to prepare for any US tariff announcement, which ultimately could involve billions of dollars in European import, and make planes, specialty foods, and luxury goods more expensive.

In April, the USTR put out a provisional list of EU goods worth $21 billion that it could target, including cheese, olive oil and aircraft. The USTR said in July another $4 billion in European products could be taxed as much as 100%.

Airlines expect the USTR will put tariffs as high as 15% on Airbus orders.