Biden and EU Suspend Tit-For-Tat Tariffs Over Aerospace Subsidies

The Biden administration and the European Union have reached an armistice in a 17-year trade dispute over aerospace subsidies. Billions of dollars in tariffs between the two parties are set to be suspended following Biden’s first summit with EU leadership.

The move comes after the United States Trade Representative temporarily suspended tariffs related to the dispute earlier this year. That initial four-month suspension aimed to provide opportunities for negotiations between the parties.

Now, the suspension on both sides will be extended by five years.

Successful negotiations mean that $7.5 billion worth of tariffs on European import items like wine, cheese, and aircraft components will drop. In turn, the EU will drop $4 billion in tariffs on American exports.

However, not all Trump-era tariffs on EU goods are off the books. According to reports from the BBC and others, duties on steel and aluminum remain.

The original dispute reaches back to the days of the Bush administration and disagreements between the U.S. and EU over subsidies for Boeing and Airbus, respectively. The tariff ceasefire comes after nearly two decades of tit-for-tat measures and World Trade Organization involvement.

Per NPR, movement on the issue came partially to unify an economic front of democratic nations to counter China.

Scarbrough International continues to track this story as it evolves. Stay connected with your Scarbrough representative for further updates.