The WTO reportedly gave Trump a green light to slap tariffs on a record $7.5 billion worth of EU goods this week

Reuters

The World Trade Organization has found airplane makers Airbus and Boeing received billions in illegal subsidies.

• The World Trade Organization will reportedly give the US the green light this week to slap tariffs on about $7.5 billion worth of EU goods, according to Reuters.
• The WTO is set to grant the record level of retaliation rights after finding European planemaker Airbus and American archrival Boeing received billions of dollars in illegal subsidies, Reuters said.
• The EU can retaliate against Boeing too, but it has to wait.
• The EU will have to wait until early next year to learn the amount of retaliation it can take against Boeing, the news outlet said.
• Watch Airbus and Boeing trade live.

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The World Trade Organization will reportedly give the US the green light this week to slap tariffs on about $7.5 billion worth of EU goods, according to Reuters, citing people familiar with the case.

The global trade watchdog is set to grant the record level of retaliation rights after finding European planemaker Airbus and American archrival Boeing received billions of dollars in illegal subsidies, Reuters said. European government officials expected the US to be awarded between $5 billion and $7 billion in retaliation rights, according to a Bloomberg report in July.

The award will allow the US to impose duties on European products with the WTO's blessing. The EU has to wait until early next year to learn the amount of retaliation it can take against Boeing, Reuters said.

The decision threatens to escalate trade tensions between the two sides. The Trump administration is likely to pull the trigger with the WTO's backing, current and former US officials told Reuters. It has already slapped duties on European steel and aluminum - prompting retaliatory action by the EU - and released a list of $25 billion worth of wine, cheese, luxury goods, airplane parts, and other potential targets.