WTO backs EU tariffs on $4 billion of US goods over Boeing subsidies

The World Trade Organization (WTO) on Tuesday opened the door for the European Union to impose tariffs on $4 billion worth of U.S. exports, saying the EU’s retaliation over America’s tax breaks for Boeing were legal.

The EU will have to request further authorization for new tariffs in areas such as agriculture, meaning they will not be enacted immediately.

For years, the United States and European Union have traded legal barbs over airline subsidies, with the EU accusing the U.S. of breaking the rules with its subsidies to Boeing and the U.S. accusing the EU of the same behavior with Airbus.

The WTO previously allowed the U.S. to impose tariffs on $7.5 billion worth of European exports.

Some trade watchers hoped that the dueling tariffs would push the parties into negotiations to back off their respective subsidies, though such a settlement to the 16-year dispute is likely a long ways off.