US suspends tariffs on UK products in move to resolve aircraft row
Airbus Group N.V.
€161.24
18:15 18/04/24
The United States agreed to halt tariffs on UK products for four months in a sign of good faith ahead of talks aimed at resolving a row over subsidies granted to the two countries' aircraft industries.
Washington had imposed levies on some British goods such as Scotch whisky under the Trump administration, in response to what it deemed “unfair” subsidies from the European Union to Airbus which it alleged had left US aircraft maker Boeing at a disadvantage.
The suspension only applies to UK goods, said a US administration official. EU goods are not exempt from the temporary halt.
“The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization,” a joint statement said.
“This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China.”
Airbus spokesman Clay McConnell welcomed the suspension of tariffs.
A British official described that as a “real win” and attributed it to the fact that Britain left the bloc and its policies.
The Scotch Whisky Association also said it welcomed the news.
“The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the U.S. falling by 35%, costing companies over half a billion pounds,” Scotch Whisky Association CEO Karen Betts said.