The office of the USA trade representative late Monday released a preliminary list of European Union goods facing additional duties that includes everything from aircraft and aircraft parts to cheese, wine and olives.
The Office of the U.S. Trade Representative said that EU support for Airbus had caused "adverse effects" when announcing the new measures, which would target European goods including jetliners, cheese, wine and motorcycles.
"This case has been in litigation for 14 years, and the time has come for action", U.S. Trade Representative Robert Lighthizer said in a statement.
"It will soon stop!" he wrote.
For more than 14 years, Washington and Brussels have accused each other of unfairly subsidising Boeing and Airbus, respectively, in a tit-for-tat dispute that long predates Mr. Trump's tenure in the White House.
The subsidies in question are those Airbus is receiving from European Union governments, as the World Trade Organization (WTO) has deemed.
The latest threat by the White House to slap higher import tariffs on a major trading partner comes after a long-running dispute between the USA and the European Union over their state subsidy support for Airbus and Boeing, the world's two biggest civil aerospace firms. The United States holds that these subsidies are much higher than the ones Boeing receives from the US, as the WTO has also determined.
The World Trade Organization ruled previous year that the European Union provided illegal subsidies to plane maker Airbus.
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"The interest of the United States as the interest of the European continent and France is to reach an amicable agreement", said French Minister of the Economy Bruno Le Maire.
"When I see the situation global growth is in, I don't think we can afford to have a trade conflict, even if only on the specific issues of the aircraft industry in the United States and Europe", he said.
Airbus suppliers such as Safran, Leonardo and Dassault lost between 0.7 percent and 1.2 percent.
Analysts were divided over whether the ramped-up dispute would lead to greater global trade issues.
Some EU members, led by France, are already skeptical of the value of negotiations with the USA, which were agreed to last July in a bid by the EU to avoid auto tariffs Trump has threatened.
It issued a similar ruling a year ago in the case brought by the United States over Airbus.
Moody's said on Tuesday potential US tariffs on imported autos and parts represented a significant risk to global growth and would hinder economic momentum in Germany, Japan and Korea.
While the size of the tariffs is small compared with the hundreds of billions the US and China are taxing in their trade war, it suggests a breakdown in talks with the European Union over trade.