Seeking Alpha Tech•Jan 19, 2026, 7:57 AM

EU Reboots Trade War: New Tariffs Hit Chips Harder Than a Failed Deploy, Devs Gear Up for Supply Chain Drama

The European Union has found itself in a new and more severe tariff fight, reigniting trade tensions with major partners. The EU has imposed tariffs on a range of US goods, including whiskey, motorcycles, and clothing, in response to similar measures taken by the US. The tariffs, which took effect on November 10, affect approximately $4 billion worth of US exports to the EU. The dispute centers on subsidies provided to aircraft manufacturers, with the EU claiming that the US has unfairly supported Boeing, while the US argues that the EU has done the same for Airbus. The World Trade Organization has ruled in favor of both sides in separate cases, leading to a cycle of retaliatory tariffs. The escalation of the trade dispute has significant implications for the global economy, particularly for industries such as aerospace and agriculture, and may lead to further retaliation and trade barriers.

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