Search ForexCrunch

The World Trade Organization (WTO) has reportedly allowed the European Union (EU) to impose tariffs on US goods worth $4 billion, in response to the subsidies for the US planemaker Boeing Co, Reuters reported, citing people familiar with the matter.

Key takeaways

“Sources on both sides said EU tariffs on products such as Boeing jets, which must still be adopted formally by the WTO, were unlikely to be imposed before the Nov. 3 presidential election as Brussels seeks to avoid inflaming a bitter campaign.”

“Both sides are expected to claim victory, however, with US sources pointing to the higher core tariffs in favor of Boeing.”

Market reaction

EUR/USD is consolidating its retreat from above 1.1750, thanks to the pullback in the US dollar across the board from its weekly lows.

At the press time, the spot posts small losses to trade at 1.1735.