The U.S. and EU could break their tariff truce over a record-breaking $3.4 billion Airbus loan and a reignited 17-year dispute between aviation giants
The Trump administration’s top trade official has pressured the EU to disclose more information about a loan its lending arm made to Airbus earlier this year.
The U.S. has cautioned Europe that a $3.4 billion loan to Airbus could jeopardize the recent truce that ended a long-standing WTO dispute and threaten the broader U.S.-EU trade agreement. The Trump administration's Trade Representative, Jamie Greer, has requested more information about the loan from the EU's European Investment Bank (EIB), which made the loan in June.
Greer highlighted that the loan is the largest ever made by the EIB and warned that it could violate the terms of the 2021 civil aircraft deal, which paused tariffs on roughly $11.5 billion of goods. The 17-year-old dispute between Airbus and Boeing could reignite, possibly leading to the reinstatement of higher tariffs and triggering the EU's retaliation package, affecting over $100 billion of U.S. goods.
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