US widens trade war with European states; Indian Sensex dips 200 points
The US imposed tariffs on 7.5 billion USD worth European exports. The WTO had earlier ruled that US could target goods from EU nations as they had failed to comply ruling regarding subsidies for Airbus.
The US had imposed tariff on 25 billion USD worth goods of European items. They were mainly on Airbus production sites like France, Germany, Spain and UK.
The root of the problem dates back to 2004. In 2004, the EU authorities said the Boeing received 19 billion USD in unfair way from state and federal governments. The US also filed similar complaints over European subsidies to Airbus.
Asian markets fell due to the US EU trade war
The markets in Japan, India, Indonesia saw great fall as the tariffs were imposed. In India the Sensex dipped by 200 points. The impose of tariff was greatly felt on agricultural and industrial products, butter, cheese, camera parts, etc.
Category: Economy & Banking Current Affairs