The US and EU have decided to end a 17-year long tariff war, which began with subsidies on aircraft and led to a retaliatory 25pc tariff on steel and 10pc duty on imported aluminum. 

 

According to media reports on Jun 16, US President Joe Biden and EC President Ursula Von der Leyen definitively ended the duties on the respective aircraft makers, Airbus and Boeing. Von der Leyen said this was a new chapter of cooperation for both sides. 

 

That said, the duties on steel and aluminum imports still remain in place for now. However, Von der Leyen added that she was confident that both sides would resolve this issue too. This is depicted in the fact that the US and EU agreed upon a four-month suspension of the aircraft tariffs in March. Having split from the EU this year, the UK is also hoping to reach similar consensus with the US on trade tariffs. 

 

Robert Martinez, president of the International Association of Machinists and Aerospace Workers, said that he was glad to hear this news as it will stop jobs and supply contracts being outsourced from the US and EU to countries like China and Mexico and create domestic employment in the former. 

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