U.S. says EU has no legal basis to impose tariffs in aircraft dispute

The U.S. government on Tuesday said the European Union could not legally impose tariffs on U.S. imports since a World Trade Organization decision authorizing countermeasures related to a since-repealed state tax break. U.S. Trade Representative Robert Lighthizer said any move by the EU to slap tariffs on $4 billion of U.S. airplanes and other goods would be "plainly contrary to WTO principles and will force a U.S. response."

He said Washington would intensify its ongoing negotiations with Brussels to restore fair competition and resolve the dispute.