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WTO rules against the US

The WTO has indicated the EU can impose up to $4 Billion in sanctions. The dispute seems to be centered on something called the Foreign Sales Corporation (FSC).
It does appear that the US is showing interest into coming into compliance with the WTO regulations; however, their heart doesn’t seem to be in it as previous revisions have not satisfied the WTO.
A nice summary of the FSC was prepared by
the National Council for Science and the Environment.
Here is some background on the dispute from the house Joint Committee on Taxation.
For much more on the dispute, see
Public Affairs Office, United States Mission to the European Union

WTO Gives EU OK for U.S. Sanctions (washingtonpost.com)
The World Trade Organization (WTO) ruled Friday that the European Union could slam sanctions worth $4 billion on U.S. exports in retaliation for tax breaks to U.S. companies, the EU said.
The ruling is be by far the highest level of retaliation ever authorized since the Geneva-based international trade body was set up in January 1995.
-snip-
The Foreign Sales Corporation (FSC), as the tax system is known, has been ruled in violation of WTO rules four times when past Washington efforts to reform it were deemed insufficient.

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