It has already taken 17 years, four American presidents, and tariffs on $11.5 billion worth of transatlantic trade for the U.S. and the European Union to reach a ceasefire in their bitter feud over aircraft subsidies. Now the battle pitting the world’s largest airplane makers looks close to reaching a five-year truce providing relief not just to pandemic-hammered Boeing and Airbus, but a host of other export sectors caught up in former President Donald Trump’s trade war with Europe, according to Bloomberg.
Just a few years ago, major fertilizer players argued over whether fertilizer products should be added to the tariffs resulting from the airplane dispute (GM Oct. 4, 2019; Aug. 16, 2019). However, they ultimately did not make the cut.
The deal, announced in Brussels on June 15, is expected to include a five-year E.U. commitment not to reinstate its duties on $4 billion worth of U.S. goods such as tractors, video games, and rum. In return, the U.S. will withdraw for five years its tariffs on $7.5 billion worth of European food and luxury items like Champagne, cognac, and leather goods.
As noted by Bloomberg, while the U.S. and E.U. squabbled over tariffs, China’s airplane sector began to emerge as a potential rival.