Europe

“There are a lot of barriers to trade there and there are a lot of other problems that we have to address.”

The European Commission on Thursday proposed an amendment to its trade enforcement law that would allow it to impose retaliatory tariffs on countries that block the resolution of a dispute at the World Trade Organization.

The Office of the U.S. Trade Representative is considering tariffs of up to 100 percent on a host of European goods including aircraft parts, agricultural goods and a variety of other products as part of its review of the retaliation it has imposed on the European Union for subsidies it provides to Airbus, according to a draft Federal Register notice set to be published next week.

Treasury Secretary Steven Mnuchin this week told the head of the Organization of Economic Cooperation and Development that the U.S. had concerns with a proposed tax framework crafted to pre-empt the need for digital services taxes and suggested a new approach the OECD warned could imperil the timeline for concluding the negotiations.

The World Trade Organization’s Appellate Body could complete work on four of 14 pending appeals despite an expected shutdown of the appellate system beginning next week, according to the Dispute Settlement Body chairman, leaving ten cases in limbo.

The Office of the U.S. Trade Representative on Monday proposed imposing 100 percent tariffs on $2.4 billion worth of French goods in retaliation for France’s digital services tax, which the Trump administration says discriminates against U.S. companies.

The U.S. had agreed to hold off on imposing tariffs for at least 90 days following an August meeting between Presidents Trump and Macron.

Japan and Canada, which have deals with both the U.S. and EU on digital trade, could also provide other “interesting bridging opportunities,” analysts said.

The Court of International Trade last week denied a Trump administration motion to dismiss a challenge lodged by a U.S. importer of steel products over the president’s decision last August to ratchet up Section 232 tariffs on steel from Turkey.