US to impose tariff on EU in light of Airbus ruling

Policy Watch

• • U.S. set to slap tariffs on EU following WTO Airbus ruling. The U.S. will impose tariffs on $7.5 billion worth of European imports in retaliation for illegal EU subsidies to airplane maker Airbus that hurt its American rival Boeing. The announcement came hours after the World Trade Organization (WTO) on Wednesday ruled on the 15-year-old case. Washington plans to impose a 10% tariff on aircrafts imported from Europe and apply a 25% import tax on other agricultural and industrial items on October 18. The EU has vowed to retaliate with its own levies on American products while it awaits a separate WTO ruling next year on its complaint that Boeing also has received improper government backing. The tariffs follow those the U.S. imposed on steel and aluminum imports last year, further souring the long-term relationship between allies. [WSJ]

  • Trump administration to broadly expand DNA collection of migrants in custody. The Trump administration is planning to expand the collection of DNA from migrants who cross U.S. borders, and to include the information in a vast criminal database operated by the FBI. The Department of Homeland Security has been operating under an exemption to DNA collection due to a lack of agency resources and time, but the administration is looking to restart the process. Broader sampling would severely strain the resources of the Department and the administration has not yet estimated the cost of the collections or a timeline to either partial or full implementation. The move comes on the heels of months of historic high apprehension numbers on the southern border and is likely to receive pushback from immigrant advocacy groups. [Politico]

  • Pelosi pushing trade deal amidst impeachment inquiry. House Speaker Nancy Pelosi indicated on Wednesday the U.S.-Mexico-Canada Agreement (USMCA), the deal meant to replace the North American Free Trade Agreement (NAFTA), could still pass while the House takes up the impeachment inquiry. Both sides, in fact, are positive the deal could see some progress. Pelosi is showing the Democrats can “walk and chew gum” at the same time but Trump expressed his opposition on Twitter. Democrats have pushed for changes to the deal including stronger enforcement for labor and environmental standards and revising its pharmaceutical policies. Some are skeptical the White House would accept the changes despite the strong working relationship Democrats have developed with U.S. Trade Representative Robert Lighthizer. [The Hill]

  • Trump to unveil Medicare plan in bid to contrast Democrat rivals. President Trump is scheduled to travel to Florida on Thursday where he will deliver a wide-ranging speech on his administration’s health policy and announce an executive order regarding the Medicare system. The order is designed to support Medicare Advantage, the private Medicare coverage for seniors that enrolls 22 million people and lower premiums for its beneficiaries. The plan is also designed to offer more affordable plan options, allow providers to spend more time with patients and reduce Medicare fraud. Many of Trump’s healthcare initiatives have failed so ome see the latest move on healthcare as a way to woo key constituents in a political swing state. [Reuters]

    Economic Indicators & News

  • U.S. jobless claims rise for third straight week. Initial claims for state unemployment benefits rose 4,000 to a seasonally adjusted 219,000 for the week ended September 28, the Labor Department said on Thursday. Data for the prior week was revised to show 2,000 more applications received than previously reported and economists polled forecasted claims would increase to 215,000 in the latest week. Some of the rise in claims could be the result of an ongoing strike by workers at General Motors but the data seems to be indicating a slowdown in manufacturing amid lower global demand and investment may be spreading into the labor market. [MarketWatch]