The European Union will slap tariffs on $4 billion worth of U.S. goods, as a 16-year tit-for-tat trade war over illegal subsidies to American and European plane makers rumbles on. Brussels said a "lack of progress from the United States" to resolve the issue forced the bloc's hand.  

"We have made clear at every stage that we want to settle this long-running issue," EU trade commissioner Valdis Dombrovskis told reporters. Adding that "in spite of our best efforts, due to a lack of progress from the U.S." the tariffs would be imposed on Tuesday.  

Brussels said the list of targeted products would "mirror" tariffs imposed by Washington and include aircraft, processed agricultural and industrial goods. 

"We are not escalating anything. We are exercising our rights as awarded by the WTO," said Germany's economy minister, Peter Altmaier. "We are ready to withdraw or suspend our tariffs at any time when the U.S. is ready to do so on their side, whether it is the current or future U.S. administration."

Brussels pins hopes on Biden

Last year, the World Trade Organization authorized the U.S. to impose punitive tariffs on $7.5 billion worth of EU exports in retaliation for illegal subsidies to Airbus. It was the largest arbitration award in WTO history. European cheese, single-malt whisky, olive oil, and French wine were caught in the crosshairs, hit with a 25 percent levy. A 10 percent tariff on Airbus planes was hiked to 15 percent in March.  

In October, the WTO gave Europe similar powers over support offered to American plane maker Boeing.  

Slapping tariffs on the U.S. is partly a negotiating tactic meant to push Washington back to the negotiating table. The Trump administration has dug in its heels, but Brussels is betting that inflicting pain on U.S. exports would bring an incoming Biden administration to the table. The projected winner of the 2020 U.S. presidential elections, Joe Biden is expected to offer more stability on international trade, especially trade with American allies.   

"Removing these tariffs would represent a strong win-win for both sides," said Dombrovskis. "We now have an opportunity to reboot our transatlantic cooperation and work towards our shared goals." 

Germany's economy minister said delaying the tariffs was not an option. "We will not know until February or March who the U.S. trade representative will be. We can't wait that long. We need to do something to avoid further escalation," said Altmaier.