Reuters

The World Trade Organization on Wednesday gave the Trump administration the green light to slap roughly $7.5 billion worth of tariffs on goods coming from the European Union.

The ruling came amid a yearslong standoff over Airbus, based in France, and Boeing, based in the US, with each claiming that the other's aircraft company is illicitly aided by government funds.

The $7.5 billion worth of tariffs could affect luxury goods such as cheese and linens, as well as aircraft parts coming from the EU — something that could raise prices for Airbus, which manufactures some of its planes in the US.

Shares of Airbus and Boeing slid on the news.

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The World Trade Organization on Wednesday gave the US the go-ahead to slap roughly $7.5 billion worth of tariffs on the European Union affecting aircraft parts and luxury goods.

The award is the largest in the WTO's history, nearly double the record set in 2002.

The long-awaited ruling came amid President Donald Trump's efforts to step up his trade war with the EU, having already hit the trade bloc with 25% tariffs on steel and threatening billions of dollars' worth of tariffs on cars.

The tariffs would be the latest escalation in a yearslong standoff over Airbus, based in France, and Boeing, based in the US, with each claiming that other's aircraft company is illicitly aided by government funds.

Trump and European Commission President Jean-Claude Juncker have been locked in a broader trade dispute for more than a year, but progress toward a long-term agreement has proved challenging.

The WTO said that "the United States may request authorization from the DSB to take countermeasures with respect to the European Union and certain member States ... at a level not exceeding, in total, USD 7,496.623 million annually."

Airbus traded more than 1% lower on the news, while Boeing dropped 2.5%.

In 2004, the Bush administration accused the EU of illegally subsidizing Airbus with $22 billion worth of cash. Subsequently, the EU accused the US of illegally subsidizing Boeing with $23 billion.

In 2011, the WTO ruled that both companies had been given unlawful assistance from their governments.

The latest WTO ruling now means that goods such as cheese, linen, and swordfish could become more expensive to export to the US and that there could be an increase in aircraft parts — something that could raise prices for Airbus, which makes some of its planes in the US.

Airbus' CEO recently said that the trade war between the EU and the US would be a "lose-lose game," arguing that neither side would benefit from hikes in tariffs.

The WTO is set to rule early next year on the EU's own proposed tariffs, so it could be a while until the trade bloc can match Trump in the trade war.

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