Peter Navarro: New tariffs won't lead to trade war with Europe
Peter Navarro, White House assistant for trade and manufacturing policy, says the World Trade Organization’s judgment in favor of the United States won’t be the start of a tit-for-tat trade war with Europe.
“This was a case that was filed with the World Trade Organization, it went through 15 years, and there was a judgment,” Navarro told FOX Business’ “Mornings with Maria” on Thursday. “Under the rules of the WTO, the judgment will be enforced, and there can be no retaliation.”
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The WTO on Wednesday ruled the U.S. can impose tariffs on $7.5 billion worth of European Union goods due to Airbus receiving illegal subsidies for more than a decade. The ruling was the biggest reward in WTO history by a factor of two.
President Trump celebrated the ruling on Thursday.
“The U.S. won a $7.5 Billion award from the World Trade Organization against the European Union, who has for many years treated the USA very badly on Trade due to Tariffs, Trade Barriers, and more,” Trump tweeted. “This case going on for years, a nice victory!
The tariffs, which are set to go into effect on Oct. 18, are expected to be 10 percent on large commercial aircraft and 25 percent on agricultural and other industrial goods. European cheese, olives and whiskey are among the goods that will be hit with the tariffs.
The E.U. has vowed to retaliate if the U.S. imposed countermeasures.
“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 to do the same,” said EU Trade Commissioner Cecilia Malmstrom.
Meanwhile, Navarro said the American people should be celebrating this victory.
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“This is the kind of day where President Trump and ambassador LIghtheizer should be getting high fives and salutes," he said. "They did a great job.”