A tariff dispute between the E.U. and the U.S. does not make business sense it will only benefit competitors, said France’s Finance Minister Bruno Le Maire.
In a significant development, French Finance Minister, Bruno Le Maire warned, any escalation in the subsidy row involving Airbus and Boeing is fraught with dangers and risks since it would only serve to benefit an emerging competitor from China.
It is important that U.S. President Donald Trump sees and recognizes this threat before he threatens to impose tariffs on European Union products, including commercial aircraft, worth $11 billion.
Europe and the United States have since long been locked in a dispute over subsidies provided to Airbus and Boeing.
“A clash between Boeing and Airbus would be absurd simply because our two industries are totally intertwined, we depend on each other for a number of components,” said Bruno Le Maire at the French Institute of Foreign Relations. “A commercial war between Boeing and Airbus will only play into the hands of COMAC”.
COMAC is a reference to Commercial Aircraft Corp of China Ltd.
The Chinese firm is trying to emerge in the global civil aerospace space.
In November 2018, along with Russia’s United Aircraft Corp, COMAC unveiled a life-sized model of a proposed widebody long-haul jet. In December 2018 its C919 narrowbody passenger jet completed its first test flight.
According to Le Maire, although Europe has the means to retaliate to any U.S. tariffs, however, “It is infinitely preferable that together with our U.S. allies we find the path toward a compromise.”