US-EU Likely to Agree on "Ending Tariff Dispute Within the Year" at Summit on the 15th

President Joe Biden of the United States
[Photo by AP News Agency]

[Asia Economy Reporter Park Byung-hee] The United States and the European Union (EU) are expected to end their three-year-long tariff dispute within this year.

With the US-EU summit scheduled for the 15th (local time) in Brussels, Belgium, Bloomberg reported on the 8th that it obtained a draft document outlining the summit agenda, indicating that both sides are likely to agree to end the tariff dispute within this year.

President Biden will begin his first European tour since taking office, starting with the Group of Seven (G7) summit held in Cornwall, United Kingdom, on the 11th-12th. Following the G7 summit, he will attend the North Atlantic Treaty Organization (NATO) summit and the US-EU summit.

The tariff dispute between the US and the EU began in 2018 during the administration of President Donald Trump. When the Trump administration imposed tariffs on EU steel and aluminum, the EU retaliated by introducing tariffs on American products such as Harley-Davidson motorcycles, leading to a clash. The atmosphere changed this year with President Biden's inauguration. The Biden administration expressed a desire to end the tariff dispute, and the EU postponed the planned tariff increase on American products originally set to take effect from the 1st of this month. President Biden is seeking to restore the alliance with the EU, which had cooled during the Trump era, to focus on countering China.

Accordingly, at the summit on the 15th, both the US and the EU are expected to agree not only to prohibit further tariff increases but also to eliminate tariffs altogether.

The US and the EU are also expected to agree to find a solution to the aircraft subsidy dispute before July 11. The Trump administration imposed tariffs worth $7.5 billion on EU products in 2019, accusing the EU of illegally subsidizing Airbus, Europe's largest aircraft manufacturer, and the EU retaliated with $4 billion in tariffs on American products. The imposition of retaliatory tariffs has been suspended for four months since March.

Additionally, there are prospects for agreements on strengthening partnerships to enhance semiconductor supply and cooperation on investigating the origins of COVID-19.

This content was produced with the assistance of AI translation services.