Grassley Says UK, Not EU, Will Be Focus of Administration This Year
Senate Finance Committee Chairman Chuck Grassley, R-Iowa, said he doesn't expect the U.S. to negotiate over the tariffs it has put on European goods like Airbus planes, Scotch whiskey, French wine, and Spanish wine and olive oil until the World Trade Organization rules on Boeing subsidies. Currently, there are 10% tariffs on Airbus planes and 25% tariffs on the wine, liquor and food items; the aircraft tariff is set to climb to 15% on March 18. The Boeing ruling is not expected for several months.
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However, a report in The Seattle Times said that Washington state legislators are working on rolling back a tax break for Boeing that the WTO said was illegal. It's possible that could mean there is no room for the EU to raise tariffs on U.S. goods.
Grassley said he also doesn't think the U.S. trade representative would negotiate seriously with Europe to lower tariffs on industrial goods. “Well, for sure we don't want to negotiate with them as long as they're not willing to negotiate agriculture,” he told reporters on a conference call Feb. 25. “I think we're going to be concentrating on the U.K. and not be worrying much about the EU negotiations.”
Grassley expressed disappointment that no deal was reached exchanging more access for American agriculture and a rescinding of price controls on medical devices for a restoration of India to the Generalized System of Preferences program. He said “you can't be sure” how close the two sides are.
Grassley also addressed a question about the coronavirus outbreak, and its effects on imports from China, saying that he believes it will spur companies that are dependent on China for inputs to review their dependence on the country's factories.