U.S., UK suspend tariffs, pledge to solve aircraft subsidy dispute
The United States concurred with the four-month suspension of its retaliatory tariffs imposed on some British products including Scotch whisky over a long-standing aircraft subsidy dispute. Both parties vowed to use the time to solve the issue.
The Trump administration had imposed tariffs on various European Union food, wine, and spirits, including on Scotch whisky. Being a former member of the European block, Britain was dragged to the retaliatory tariff imposition.
The multi-billion-dollar tariff war between the United States, the European Union, and Britain, which left the EU at the end of 2020, relates to a long-standing dispute over state subsidies for planemakers Airbus and Boeing.
The tariff cancellation only applies to UK goods while U.S. tariffs will continue over EU goods, as explained by the U.S. administration official.
Citing a source privy to the matter, negotiations between the United States and the United Kingdom on a separate deal focused on the aircraft subsidies issue had been developing but were briskly ended in January.