Trump threatens EU with tariffs

President Donald Trump on Tuesday threatened to impose billions of dollars in new tariffs on the European Union in response to illegal subsidies to the aircraft builder Airbus. The United States wants to slap $11 billion dollars in tariffs on reams of European goods from aircraft to cheese and wine.

The long-running trade dispute began years before Trump took office. In 2004, the United States complained to the World Trade Organization (WTO) about the EU support of of the Europe-based Airbus. The WTO ruled last May that the EU provided some illegal subsidies to the company, which hurt the United States, especially Chicago-based Boeing. The value of Boeing stock has fallen by 13 percent since the deadly March 10 crash of an Ethiopian Air jet made by the company. Boeing said this week it hasn't received any new orders for its beleaguered 737 Max in more than a month.

“The EU has taken advantage of the U.S. on trade for many years. It will soon stop!” Trump tweeted Tuesday.

The EU argues the United States is exaggerating the issue and vowed to retaliate against any new tariffs. Whether the United States can impose the tariffs depends on a further ruling from the WTO.