WTO Awards US Record $7.5 Billion in Dispute with EU

The United States has won a record $7.5 billion award over illegal European Union subsidies to airline builder Airbus.

This is the largest arbitration award the World Trade Organization has ever handed out to a complaining party.

As part of the penalty against the EU, the United States will start imposing stiff tariffs on a wide range of European goods exported to the U.S. starting Oct. 18.

"For years, Europe has been providing massive subsidies to Airbus that have seriously injured the U.S. aerospace industry and our workers," U.S. Trade Representative Robert Lighthizer said Wednesday. "Finally, after 15 years of litigation, the WTO has confirmed the United States is entitled to impose countermeasures in response to the EU's illegal subsidies."

President Donald Trump and Finnish President Sauli Niinisto participate in a news conference at the White House in Washington, Oct. 2, 2019.

During a White House press conference with the president of Finland — whose exports would be affected by the tariffs — President Donald Trump called the WTO decision a "big win" for the United States, saying the WTO wanted to "make sure I'm happy."

The WTO's decision is final and cannot be appealed. But the EU issued a statement from Brussels saying, "If the U.S. decides to impose WTO authorized countermeasures, it will be pushing the EU into a situation where we will have no other option than do the same."

The U.S. plans to impose a 10% tariff on European-built commercial aircraft and a 25% tariff on a wide range of European goods, including Scotch and Irish whiskies, clothes, tools and food.

The U.S. brought the EU before the WTO in 2004, accusing Britain, France, Germany and Spain of giving illegal subsidies and grants to Airbus, making its commercial jets much cheaper on the global market than Airbus's chief U.S.-based rival, Boeing.

The USTR says it plans to open talks with the EU "aimed at resolving this issue in a way that will benefit American workers."