The United States and the United Kingdom have suspended additional import duties on each other’s products for at least four months. In the meantime, a final settlement is being negotiated, the British government says. London unilaterally cancelled additional tariffs for some US products in January to reduce trade tensions.
This is a 17-year conflict between the United States and the European Union over state aid to their aviation sector. Washington accused European countries of secretly supporting Airbus with favourable loans. The EU, for its part, believes that Boeing has been helped by advantageous tax rules. In response to the dispute, additional trade tariffs were imposed on both sides. They received the approval of the World Trade Organisation.
Additional levies were also imposed on British products, but the country is no longer a member of the European Union. Now that Brexit is in place, London can pursue its own trade policy.
Last month it was announced that the Government of US President Joe Biden is going to review the policy on import duties on products from the European Union. Several EU member states want to strengthen ties with the US with Biden. This should also put an end to the problems caused by the levies imposed by the previous President Donald Trump.