The US is readying itself to impose import tariffs on European Union (EU) goods worth $7.5bn in response to the continuing row over subsidies given to Airbus and Boeing.
World Trade Organization (WTO) gave Washington the go-ahead to impose the tariffs, which it will put in effect on the 18th October.
A tariff of 10% will be applied to aircraft, while a 25% duty will be placed on other items.
The EU responded by producing up a list of US exports worth a collective $20bn that it proposes it will place tariffs on, which the WTO will decide upon in the coming months.
It is hoped that an agreement can be reached over aircraft subsidies to avoid an escalation of the dispute, which started 15 years ago when Boeing filed a complaint with the WTO.
It is being reported that the complaint centred around repayable launch aid from EU member states, which Airbus insists is not a subsidy in the same fashion as grants or tax breaks.
Airbus has alleged that Boeing benefited from support through federal, state and local authorities.