The United States and the United Kingdom have suspended the additional import duties on each other’s products for at least four months.
In the meantime, a final settlement is under negotiation, the British government said. London unilaterally cancelled extra tariffs on some American products in January to ease trade tensions.
This concerns 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, in turn, believes that Boeing was helped with advantageous tax rules. In response to the dispute, additional trade tariffs were imposed on both sides. These again received the approval of the World Trade Organization WTO.
Additional levies were also imposed on British products, but the country is no longer a European Union member. Now that Brexit is a fact, London can pursue its own trade policy.
Last month, it was announced that US President Joe Biden’s government is going to review the policy on import duties on products from the European Union. Several member states in the EU want to strengthen ties with the US with the arrival of Biden. This should also end the problems posed by the levies imposed by previous President Donald Trump.