Airbus shares hit by U.S. tariff measures

Shares in European plane maker Airbus fell on Thursday (Aug 13)

After the U.S. government said it would maintain 15% tariffs on the company's aircraft.

On Wednesday Washington said it would keep the duties on Airbus and 25% tariffs on other European goods.

It comes despite moves by the EU to resolve a 16-year dispute over aircraft subsidies.

The U.S. trade representative, Robert Lighthizer said the EU had not taken actions necessary to come into compliance with the World Trade Organization's decisions.

He also ignored calls from EU officials and U.S. lawmakers to drop tariffs on EU food, wine and spirits.

But he did not add tariffs to vodka, gin and beer as it had threatened.

Airbus said it "profoundly regrets" the decision.

Last month, it announced it would increase loan repayments to France and Spain in a "final" bid to settle the long-running dispute with the U.S. over subsidies.

Trade groups are bracing for an escalation of the row in the autumn.

That's when the EU is expected to win WTO approval to hit back with its own tariffs over subsidies for Boeing.

Airbus shares were down over two percent in early trade, making the stock the worst performer on France's benchmark index.