U.S. importers of European citrus will soon have to pay an additional 25% tariff after the World Trade Organization sided with the U.S. in its dispute with the European Union over illegal subsidies to Airbus.
The World Trade Organization is expected to approve the tariffs on Oct. 14, as part of of U.S. countermeasures in the $7.5 billion arbitration award. The U.S. is applying a 25% tariff on agricultural products from the European Union.
According to the Office of the U.S. Trade Representative, the WTO award of $7.5 billion annually is by far the largest award in WTO history, almost twice the largest previous award. The amount was based on WTO findings that the European Union aid for Airbus caused significant lost sales of Boeing large civil aircraft.
Fresh produce items hit by the 25% tariff include oranges, mandarins and lemons. In 2018, the U.S. imported $14 million in Spanish clementines. In 2017, the U.S. imported nearly $7 million of Spanish lemons.