The U.S. threatened to impose sanctions against the European Union after the World Trade Organization (WTO) ruled that Airbus SE received illegal government funding to develop jetliners, costing Boeing Co. sales.

The final decision affirmed a 2016 finding that the EU had failed to eliminate unfair subsidies for two Airbus twin-aisle models, ending a long-running trade case. The international court is expected to rule later this year on a separate case in which the EU challenged billions of dollars in U.S. tax incentives to Boeing.

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