- US airline stocks plummeted Wednesday after the World Trade Organisation approved President Trump’s $US7.5 billion worth of proposed tariffs on the European Union. The duties will affect aeroplane parts and luxury goods.
- The approval is the largest in the WTO’s 24-year history, and further escalates the trade conflict between the bloc and the US.
- United Airlines and American Airlines both fell roughly 6%. JetBlue fared better than its peers, dropping about 2.8%.
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Major US airlines saw their stocks tumble Wednesday after President Trump won approval from the World Trade Organisation for $US7.5 billion worth of tariffs on EU-based aeroplane parts and luxury goods.
The approval is the largest in the WTO’s 24-year history, nearly doubling the previous record from 2002. The tariffs affect the decades-long conflict between US-based Boeing and EU-based Airbus, with both companies accused of illegally using government funds to compete with the other.
Here are the major US airlines hit by the announcement and how much they have fallen as of 1:30 p.m. ET:
- Alaska Air Group (ALK): down 4.6%
- American Airlines (AAL): down 5%
- Delta Air Lines (DAL): down 6.1%
- JetBlue Airways (JBLU): down 2.9%
- Southwest Airlines (LUV): down 3.2%
- Spirit Airlines (SAVE): down 4.4%
- United Airlines (UAL): down 5.7%
The tariff announcement furthers Trump’s trade conflict with the EU. The President already issued a 25% duty on steel from the bloc in March 2018, and is threatening billions of dollars worth of tariffs on European cars.
The WTO ruling also permits tariffs on luxury goods from the EU including linen, cheese and swordfish. The organisation is scheduled to rule on proposed tariffs from the EU early next year.
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