19 Apr Trade Tensions Dissipating. Click to keep reading…
The U.S. and the EU have suspended tariffs for four months on $11.5 billion of each other’s goods, while they attempt to iron out a deal on a long-running dispute related to aerospace subsidies. The U.S. also struck an independent deal with Britain, since they left the EU in 2020.
Some of the goods benefiting from lower tariffs include U.S. exports of aircraft, suitcases, nuts, cherries, booze and wine. European exporters of jetliners, wine, whiskey, cheese, olives and other foodstuffs will experience tariff relief. A few exceptions include U.S. shipments of whiskey and Harley Davidson motorcycles, as they are part of another squabble related to steel and aluminum duties.
The aerospace subsidy dispute goes back two decades. President Biden has made the resolution of the dispute a top priority, but a solution will probably not come within the next four months.
Like all things trade related, it’s difficult to predict outcomes. Learn more at Politico.eu online.