The European Union reacted to the duties and tariffs on Boeing and impose tariffs on $4 billion of U.S. goods as a counter-attack.

The Taxes and duties are imposed on items such as tractors, ketchup and orange juice and it has commenced from Tuesday. The united states impose tariffs on European products last year and EU is still optimistic to settle down the tariff fight after the Jo Biden takes the charge.

EU Trade Commissioner Valdis Dombrovskis said that they want the removal of tariffs from bothsides. Which is the result of the old rivalry between Boeing and Airbus. Mr Dombrovskis said that scrapping the tariff is good for both sides especially when pandemic has wrecked the economies and especially the aviation industry.it is time for us to work together to achieve our common goals.

Robert Lighthizer who is representing U.S. trade said that the U.S is disappointed with the move and said that subsidy to Boeing was slashed seven months ago. The European Union only follow WTO rules when it is convenient for them.

The Rift between the two companies is going one since decades but the trade tension between the two traditional allies have grown particularly strained during Trump tenure. The WTO is hanging in the middle and on different times supported both sides. Last year, WTO said that the US actions against Boeing are justified and WTO issued a similar statement in October in favour of European union to place tariffs on U.S. goods.

Both sides are working to settle down the conflicts over trade but according to Mr Dombrovskis, there is still no positive progress seen towards the settlement. He Said that the European Union made tried several times to settle this long-running issue but there is no interest shown by the U.S  which force us to impose the recent tariffs.