US and EU took a break in the Tariff War
The European Union and the United States suspend billions of dollars in import duties on each other’s products for four months. It seems that the major powers are finally coming together in a dispute over illegal state aid to aircraft manufacturers Boeing and Airbus that has been going on for some 17 years. Washington accused European countries of secretly supporting Airbus with favourable loans. The EU, for its part, felt that Boeing was being helped by advantageous tax rules. In response to the dispute, additional trade tariffs were imposed on both sides.
In november Brussels imposed import duties on US products worth around $ 4 billion. The US government of President Donald Trump had previously proposed tariffs for $ 7.5 billion in European products, including cheese, olives and whisky.
The suspension allows both parties to concentrate on resolving the long-term dispute. ,This is an important step forward. It marks a ‘reset’ in the relationship with our largest and economically most important partner”, says EU trade commissioner Valdis Dombrovskis.
,, The relationship between the United States and the European Union must be repaired and revived, said US president Joe Biden in a telephone conversation with European Commission President Ursula von der Leyen. He’s going to do that.
Unlike his predecessor Trump, Biden stressed his support for the EU. Trump has often expressed his disapproval of the Union. Biden pointed to the close trade and investment links between the US and Europe.
The two leaders stressed the need to work together in the fight against the coronapandemie, the path to economic recovery, and the climate crisis. They also agreed to coordinate policies around countries such as Russia, China, Belarus and Ukraine.
Von der Leyen spoke in a statement of”the beginning of a good personal partnership”. She invited Biden to an international health conference in Rome on 21 May.
Biden has already spoken with heads of government from a number of EU countries.