EU member states vote to extend suspension of US retaliatory tariffs in Airbus-Boeing dispute

EU member states decided on Thursday to suspend retaliatory tariffs imposed by the bloc on the US as part of the long-running Airbus-Boeing dispute.

The move, first reported by POLITICO, comes as Brussels seeks to prevent a reignition of the transatlantic trade war during a period of eased tensions between the EU and the US.

This week, the European Union gave its final approval to the trade agreement signed with President Donald Trump last year.

Thursday’s vote extends the suspension period of the EU’s retaliatory tariffs. These tariffs affect $4 billion worth of US imports, including aircraft, tobacco, and alcoholic beverages.

These tariffs were first implemented in 2020 at the height of the transatlantic dispute over subsidies granted to Airbus and Boeing.

For nearly two decades, the European Union and the US accused each other of providing illegal subsidies to Airbus and Boeing.

Following years of legal battles, the World Trade Organization ruled that both sides had violated the rules, paving the way for retaliatory tariffs affecting $11.5 billion in bilateral trade.

A truce reached between the European Commission and the Biden administration in 2021 had suspended the dispute since then. The truce was set to expire on July 11.

An EU official stated that negotiations between Washington and Brussels are still ongoing regarding how long the new suspension period will last.