Shipping yard

New duties could potentially rise to 100%

The US is weighing up new tariffs on British food and drink as part of an ongoing dispute with the EU over aircraft subsidies.

The US Trade Representative is looking to impose new tariffs on $3.1bn of EU exports across 30 products including beer, gin and biscuits, according to a note published Tuesday launching the start of a public consultation.

Many of the new tariffs specifically target France, Germany, Spain and the UK, with new duties potentially going up to 100%.

Shellfish, pasta and jams are on a further list of goods that could be subject to increased duties.

The US government is asking respondents to comment on whether certain EU exports “should remain on or be removed from the list, and if a product remains on the list, whether the current rate of additional duty should be increased to as high as 100%”.

The US imposed 25% duties on products including single malt scotch whisky, smoked salmon and cheddar cheese on 18 October last year, after the World Trade Organization ruled EU nations gave illegal subsidies to aircraft manufacturer Airbus.

The US has gradually increased the duties in stages, not yet taking advantage of its right to impose 100% tariffs on $7.5bn of EU imports as allowed in the WTO ruling.

The WTO has not yet ruled on an equivalent case for US subsidies for Boeing, inhibiting the EU from retaliating.