Your airfares may go up because of U.S. tariffs on Airbus planes.
The tariffs stem from a 15-year-old dispute over government subsidies to Airbus and Boeing.Delta's first Airbus A350 in Atlanta.over subsidies received by the aircraft manufacturer, and travelers may end up paying higher airfare as a result.
The tariffs stem from a 15-year-old dispute between the U.S. and Europe over government subsidies paid to aircraft manufacturers"It just raises the cost for everybody," said Jeff Windau, an industrials analyst at Edward Jones. "Of course those prices get pushed onto customers, ultimately." The WTO on Wednesday authorized the U.S. to impose tariffs on $7.5 billion of European imports, opening the possibility of a rapidly escalating tit-for-tat trade war between the EU and the U.S. The WTO is expected to determine in the coming months the value of U.S. goods that the European bloc can apply tariffs on due to the dispute over Boeing subsidies, meaning European airlines may have to soon pay more for new Boeing planes.
Airlines balked after the U.S. said it would implement 10% tariffs on Airbus planes starting Oct. 18 as it would drive up their costs. Airlines for America, a trade group that represents airlines including Airbus customer
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