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U.S. and Europe will suspend tariffs on wine, food and airplanes.


The United States and European Union have agreed to temporarily suspend tariffs levied on billions of dollars of each others’ aircraft, wine, food and other products as both sides try to find a negotiated settlement to a long-running dispute over the two leading airplane manufacturers.

President Biden and Ursula von der Leyen, the president of the European Commission, agreed in a phone call on Friday to suspend all tariffs imposed in the dispute over subsidies given to Boeing and Airbus for “an initial period of four months,” Ms. von der Leyen said in a statement.

“We both committed to focus on resolving our aircraft disputes, based on the work our respective trade representatives,” she said. “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.”

The World Trade Organization had authorized both the United States and Europe to impose tariffs on each other as part of two parallel disputes, which began almost two decades ago, over subsidies the governments have given to Airbus and Boeing. The Biden administration had said it would press Europe for a settlement that would remove the levies.

In a joint statement with the European Union, the Office of the United States Trade Representative said the suspension would take effect “as soon as the internal procedures on both sides are completed” and that it signaled “the determination of both sides to embark on a fresh start in the relationship.”

“The E.U. and the U.S. are committed to reach a comprehensive and durable negotiated solution to the Aircraft disputes. Key elements of a negotiated solution will include disciplines on future support in this sector, outstanding support measures, monitoring and enforcement, and addressing the trade distortive practices of and challenges posed by new entrants to the sector from non-market economies, such as China,” the statement said.

On Thursday, the United States said it would temporarily suspend tariffs levied against the United Kingdom, including on Scotch whisky, as part of the dispute for a period of four months.

Monika Pronczuk and Liz Alderman contributed reporting.



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