Mar 5, 2021 - Economy

U.S. and EU agree to suspend tariffs imposed in Airbus-Boeing dispute

Jacob Knutson

A worker at an Airbus factory in Hamburg, Germany, in 2017. Photo: Sean Gallup/Getty Images

The United States and European Union on Friday agreed to suspend for four months the tariffs imposed in the long-running dispute over subsidies to Airbus and Boeing.

Why it matters: The agreement is a major step in resolving the 17-year dispute, which has resulted in tariffs on billions of dollars of exports to and from the U.S. and Europe.

"It provides an important boost to EU exporters, since the U.S. had been authorised to raise tariffs on $7.5 billion of EU exports to the U.S," the European Commission said in a statement. "Similarly, EU tariffs will be suspended on some $4 billion worth of U.S. exports into the EU."

What they're saying: "We both committed to focus on resolving our aircraft disputes, based on the work our respective trade representatives," European Commission President Ursula von der Leyen said in a statement after a call with President Biden Friday.

"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," she added.

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U.S. and EU agree to suspend tariffs imposed in Airbus-Boeing dispute

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