US says EU has no legal basis to impose tariffs in aircraft dispute

Representative image/Credit: Reuters Photo

The US government on Tuesday said the European Union could not legally impose tariffs on U.S. imports since a World Trade Organization decision authorizing countermeasures related to a since-repealed state tax break.

US Trade Representative Robert Lighthizer said any move by the EU to slap tariffs on $4 billion of U.S. airplanes and other goods would be "plainly contrary to WTO principles and will force a US response."

He said Washington would intensify its ongoing negotiations with Brussels to restore fair competition and resolve the dispute.