EU's Malmstrom: US not willing to negotiate on aircraft industry subsidies

During a briefing on Monday, European Union trade chief Cecilia Malmstrom said that the EU offered a deal on aircraft subsidies to the US but added that Washington was not willing to negotiate.

"Our view is that we have enough tariffs in the world as it is. The U.S. president likes to make deals so we have offered to try to make a deal to find a negotiated solution," Malmstrom said, per Reuters. "So far, unfortunately, the US has not said that they are willing to negotiate, at least not until they have imposed their tariffs, which they are likely to do quite soon."

Although it's difficult to assess the impact of these remarks on the market sentiment at the moment as investors remain focused on the heightened tensions in the Middle East, a trade conflict between the EU and the US is likely to keep investors away from risk-sensitive assets.

"We also know other big players in the world, such as Russia and China but also others, are also subsidising their civil aircraft industry," she added.