© Reuters. FILE PHOTO: Airbus CEO Guillaume Faury attends a news conference at the 53rd International Paris Air Show at Le Bourget Airport near Paris

MONTREAL (Reuters) – Airbus (PA:) Chief Executive Guillaume Faury said on Thursday he will continue to advocate for a settlement on trade between the United States and Europe and called the imposition of tariffs a “lose-lose game” on both sides of the Atlantic.

The United States was granted approval this month to impose tariffs on European Union goods with an annual trade value of around $7.5 billion, over illegal government support for the European planemaker.

“We think a trade war on aviation will be a lose-lose game,” Faury told reporters in Montreal. “We continue to advocate for a settlement on this topic and we think it’s still possible.”

Tariffs, he warned, would raise costs on planes ordered by carriers at a specific price years ago.

The World Trade Organization has found that both Airbus and its U.S. rival Boeing (N:) received billions of dollars of subsidies in a pair of cases marking the world’s largest ever corporate trade dispute. Both sides have threatened tariffs after the Geneva body found neither adhered fully to its findings.

Washington sought permission to impose tariffs up to 100% on European goods worth $11.2 billion a year. Those include aircraft and aerospace parts from Airbus host nations – Britain, France, Germany and Spain – as well a range of goods including wine, cheese and luxury goods from across the EU.

Roughly 40% of an Airbus aircraft is U.S. content, Faury said.

The company operates a final assembly line for its narrowbody planes in Alabama.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link