Key facts
- EU countries voted to extend the suspension of retaliatory tariffs against the U.S. in the Airbus-Boeing dispute.
- The tariffs, affecting $4 billion in U.S. goods, were imposed in 2020.
- A 2021 truce between the EU and the U.S. has kept the dispute in abeyance.
- The truce was due to expire on July 11.
- The duration of the new suspension is still under negotiation.
EU countries voted on Thursday to extend the suspension of retaliatory tariffs against the United States in the long-running Airbus-Boeing dispute, according to two EU diplomats. This decision aims to prevent the re-escalation of a transatlantic trade war amid easing tensions between the blocs. The suspended tariffs, which affect approximately $4 billion in U.S. imports including aircraft, tobacco, and spirits, were initially imposed in 2020 due to disputes over subsidies for Airbus and Boeing. The World Trade Organization had previously ruled that both sides had violated rules regarding these subsidies. A truce established in 2021 between the European Commission and the Biden administration has kept the dispute on hold, with the previous agreement set to expire on July 11. Negotiations are ongoing between Washington and Brussels regarding the duration of the new suspension.