The EU and the USA have agreed to temporarily suspend punitive tariffs imposed on each other. This is the result of a telephone conversation between US President Joe Biden and Ursula von der Leyen. According to the agreement, the tariffs imposed in the dispute over state aid for financing the development and manufacture of aircraft are to be suspended for an initial period of four months as a sign of a new beginning in relations.
Since November 2020, the EU had imposed punitive tariffs on imports of numerous goods from the United States. The special levies approved by the World Trade Organization (WTO) due to unauthorized subsidies for the U.S. aircraft manufacturer Boeing were imposed on various consumer and capital goods.
Because of unauthorized subsidies for the European aircraft manufacturer Airbus, WTO arbitrators had already approved punitive tariffs of $7.5 billion on products from the EU for the U.S. last fall.
This does not resolve the punitive tariffs on imports of steel and aluminum supplies to the USA. Overall, the tariff dispute dates back to 2004.
Our "International Business" competence team will be happy to advise you on the details.