US-EU trade truce at risk over $3.4 billion Airbus loan, Trump official warns

A tariff truce between the European Union and United States is potentially at risk due to a multibillion-dollar loan approved by the bloc's investment bank for Airbus this summer, President Donald Trump's top trade official said Monday. 

US Trade Representative Jamieson Greer expressed concern that his office had received "no details about this loan" and pressed for the situation to be "resolved as soon as possible." 

"I had sincerely hoped that trade-distorting European subsidies to Airbus were a thing of the past," Greer said in a statement. 

"This situation injects substantial uncertainty into transatlantic trade in the aerospace sector," he continued.

In June, the European Investment Bank (EIB) said it would provide Airbus with a record three billion euros ($3.4 billion) in financing to boost its research and development.

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"This new financing -- unprecedented in the EIB's history -- aims to provide Airbus with not only the capacity but also the flexibility needed to invest in long-term research, development and innovation across both commercial aviation and the security and defence sectors," EIB vice president Ambroise Fayolle told AFP at the time.

The United States and European Union had been squabbling over alleged unfair trade practices since 2004, with both sides claiming the other provided support to private companies, such as aircraft manufacturers Boeing and Airbus, in violation of international trade agreements. 

The 17-year-long feud saw the United States and EU impose tariffs on billions of dollars worth of each other's products. 

But in 2021, a five-year deal was agreed between both sides under former president Joe Biden's administration.

Both sides have not reimposed the tariffs since.

(FRANCE 24 with AFP)