/The US will reportedly slap $7.5 billion worth of tariffs on European imports

The US will reportedly slap $7.5 billion worth of tariffs on European imports

Trump Jean-Claude JunckerWin McNamee/Getty Images

The US is expected to dramatically escalate trade tensions with Europe this month following a decision from the World Trade Organization on Wednesday. 

The US plans to levy a 10% tariff on aircraft from the bloc and a 25% tariff on other goods ranging from agricultural to industrial items, according to Bloomberg, which cited a senior US trade official. The finalized USTR list of affected products is expected to be published within a day.

Earlier Wednesday, the WTO reached a historic ruling that authorized the US to impose punitive tariffs on $7.5 billion worth of European products. The decision, which was the largest ever arbitration award ever granted by the organization, came after the EU was found to have illicitly aided Airbus.

The new European tariffs will be in the full amount of the $7.5 billion authorized by the WTO, according to the Wall Street Journal.

The two sides have been locked in a dispute over aircraft subsidies for more than a decade and a half, with the EU accusing US-based Boeing of similar violations. The bloc is expected to retaliate after a companion WTO case that is scheduled to take place early next year.

Read more: The chief strategist at a $1 trillion investing giant says Trump is doomed to lose his trade war — and explains why that would be the best possible outcome for markets

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