The EU has hit back at US President Donald Trump 's threats of tariffs on wine and cheese with a $ 20bn bill of its own , imposing duties on handbags and tomato ketchup . It comes amid a long - standing World Trade Organisation ( WTO ) dispute over aircraft subsidies paid to Boeing and Airbus . Last year , the WTO ruled against the US , prompting Trump to publish a list of tariffs he claimed offset the $ 11bn - worth of subsidies Airbus subsidies had cost the US . A settlement in Washington 's case against the French airplane manufacturer is expected in the summer .
The EU has hit back at US President Donald Trump's threats of tariffs on wine and cheese with a $20bn list of its own, imposing duties on handbags and tomato ketchup. It comes amid a long-standing World Trade Organisation (WTO) dispute over aircraft subsidies paid to Boeing and Airbus. Last month, the WTO ruled against the US, prompting Trump to publish a list of tariffs he claimed offset the $11bn-worth of damage Airbus subsidies had cost the US. A ruling in Washington's case against the French airplane manufacturer is expected in the summer.