The World Trade Organization (WTO) has ruled that the U.S. can impose penalty tariffs worth $7.5 billion on imports of EU goods to compensate for harm to Boeing – a move that could open up a new front in the Trump administration’s trade wars.

A WTO arbitrator said on Wednesday that the U.S. was entitled to impose retaliatory duties on EU products because of illegal subsidies the EU had provided to European airplane manufacturer Airbus.