US Suspends Retaliatory Tariffs on European Wine and Whiskey

Decision to Postpone Retaliatory Tariffs in Aircraft Subsidy Dispute for 4 Months

[Asia Economy New York=Correspondent Baek Jong-min] The United States and the European Union (EU) have agreed to suspend the imposition of retaliatory tariffs arising from the aircraft subsidy dispute.

[Image source=Reuters Yonhap News]

On the 5th (local time), U.S. President Joe Biden issued a statement after a phone call with Ursula von der Leyen, President of the European Commission, announcing that both sides agreed to suspend tariffs imposed due to the Airbus and Boeing aircraft subsidy dispute for four months.

President Biden expressed hope that the aircraft subsidy dispute would be resolved at the World Trade Organization (WTO).

During the Trump administration, based on the WTO ruling that the EU had provided illegal subsidies to Airbus, the U.S. imposed retaliatory tariffs on EU products worth $7.5 billion (8.13 trillion won) in 2019, including wine and whiskey.

In response, the EU also decided to impose retaliatory tariffs worth $4 billion (4.336 trillion won) on U.S. products, including aircraft from the American company Boeing.

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