The US and the European Commission have agreed to a four-month suspension of the retaliatory tariffs each implemented due to the long-running Airbus-Boeing trade dispute.
European commission president Ursula von der Leyen made the announcement on March 5 after speaking with US president Joe Biden on several topics, including its economic relationship.
“We both committed to focus on resolving our aircraft disputes, based on the work our respective trade representatives. This is excellent news for businesses and industries on both sides of the Atlantic, and a very positive signal for our economic cooperation in the years to come,” von der Leyen said in a statement.
The US taxed scotch and the EU taxed bourbon
The tariffs were implemented as penalties for illegal subsidies various governments gave to the two aerospace companies. The US tariffs on $7.5 billion of goods imported from various EU countries to the US included aircraft, several different kinds of dairy, as well as olives, meat, and wine. Conversely, the EU issued duties to $4 billion worth of US airplanes, tractors, liquors, and tobacco imported. The duties were on top of the normal level and ranged from 10% to 25%.
The announcement is seen as a step towards resolving the dispute and much-needed assistance to Airbus and Boeing. Both companies have struggled due to weak travel and low demand for their jetliners due to the ongoing Covid-19 pandemic. Boeing’s 737 Max plane was also the cause of two fatal flights in 2018 and 2019, and the company recorded its first annual loss in two decades prior to the pandemic.
Search the tables below to see which products are losing their retaliatory tariffs and how much those tariffs have been.