U.S. and EU Suspend Boeing-Airbus Tariffs for Four Months -- Update
By Laurence NormanYuka Hayashi and Doug Cameron
The U.S. and the European Union have agreed to suspend for four
months all tariffs imposed in the trade dispute over subsidies to
Airbus SE and Boeing Co., European Commission President Ursula von
der Leyen said.
Ms. von der Leyen said Friday that the two sides would work to
fully resolve the yearslong dispute. The Commission president said
the joint decision was a symbol of a fresh start for the
Ms. von der Leyen said she had spoken to President Biden earlier
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 said.
The White House put out a statement shortly after the EU
announcement. "Noting our shared values and the world's largest
trade and investment relationship, the leaders agreed to suspend
the tariffs related to the World Trade Organization (WTO) Aircraft
disputes for four months and to work toward resolving these
long-running disputes at the WTO," the statement said.
Airbus welcomed the decision and said it supports "all necessary
actions to create a level-playing field and continue to support a
negotiated settlement of this longstanding dispute in order to
avoid lose-lose tariffs."
Boeing didn't immediately respond to a request for comment.
The action will mean a suspension of U.S. tariffs on $7.5
billion in imported European products, including wine, whiskey and
food items such as cheese and olives, as well as aircraft.
In exchange, the EU will lift duties on $4 billion in U.S.
products including jetliners, wine, suitcases and produce such as
The decision by the EU and the U.S. to suspend tariffs on
aircraft deliveries for four months will ease another of the
constraints affecting Boeing and Airbus customers.
The suspension of the tariffs reflects an easing of trade
tensions between Washington and its trading partners strained by
President Donald Trump's aggressive trade policy. Mr. Biden has
said he would work closely with allies and international
Katherine Tai, who is expected to be confirmed U.S. Trade
Representative in the coming days, said during her confirmation
hearing last week that she was eager to resolve the aircraft
The announcement came a day after the U.S. and the U.K. unveiled
a similar agreement, in which both countries are suspending
retaliatory tariffs in the aircraft dispute for four months. The
decision has resulted in the removal of U.S. tariffs on U.K.
whiskeys and other items.
Delta Air Lines Inc. has been the U.S. carrier most affected by
the EU action, while Ryanair Holdings PLC's Boeing 737 MAX delivery
schedule made it the most exposed European airline this year.
Carriers haven't disclosed whether they paid the tariffs.
Write to Laurence Norman at firstname.lastname@example.org, Yuka
Hayashi at email@example.com and Doug Cameron at
(END) Dow Jones Newswires
March 05, 2021 13:13 ET (18:13 GMT)
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