Boeing could lose state tax break amid tariff fight
February 20, 2020 10:50 am
US lawmakers are taking steps to remove a tax break for Boeing that is at the centre of a fight between the European Union and the US. [Source: BBC]
US lawmakers are taking steps to remove a tax break for Boeing that is at the centre of a fight between the European Union and the US.
Legislators in the state of Washington, Boeing’s main manufacturing hub, introduced the plan on Wednesday.
They want to avoid a trans-Atlantic tariff war triggered by aircraft subsidies, the state’s governor said.
The US last year imposed tariffs on $7.5bn worth European-made products as punishment for EU support for Airbus.
Those measures were approved by the World Trade Organization (WTO), which had ruled that the European support was illegal. The US recently ratcheted up the tariff rate on aircraft, in a bid to put pressure on the EU to act.
However, a similar case against the US, over the tax benefits for Boeing, is pending. In that case, the WTO is expected to rule in the EU’s favour, clearing the way for retaliation against the US.