The escalation of the trade dispute between the US and the EU could lead to another trade war. The World Trade Organization has authorized the EU to impose tariffs on about $4 billion worth of US goods in retaliation for subsidies granted to American aircraft maker Boeing. Until recently, the EU has not taken any serious actions against its American counterpart in response to its persistent claims over existing trade agreements. Washington, on the other hand, was generously imposing sanctions and raising tariffs at its own discretion, while Europe could not respond to these actions being limited by various obligations. However, under the new WTO ruling, the EU can now impose tariffs on about $4 billion of US goods per year. This decision may mark the beginning of a trade war between the two parties.  Notably, last year, the WTO backed the US in the dispute over the EU state support for Boeing’s rival Airbus. As a result, Washington introduced tariffs on $7.5 billion worth of EU goods. Brussels has long stopped supporting Airbus, but the US tariffs are still in place. At the moment, the EU authorities act in full compliance with the WTO decision on subsidies. Brussels called on Washington to lift the restrictions since there were no more grounds for them. However, the US is not going to give up and threatens to strike much harder in response.