President Biden and European Union leaders reached an agreement to halt the long-running trade dispute over subsidies for Boeing and Airbus. The Hill says the announcement comes as the president participates in an EU-U.S. summit in Brussels as part of his first trip overseas as president.
The two sides hope it will improve relations between America and Europe as both are collectively trying to counter the rising power of China.
U.S. Trade Representative Katherine Tai says the announcement resolves a long-standing “irritant” in the relationship between the U.S. and the European Union.
“Instead of fighting with one of our closest allies, we are finally coming together against a common threat,” she says.
As part of the deal, both sides will suspend the tariffs related to the dispute for five years, including tariffs on wine, spirits, tractors, and cheese.
The Hill points out that Biden still hasn’t announced plans to lift tariffs on European steel and aluminum imposed by the Trump administration, which may still be a continued source of tensions. A senior administration official says the negotiations are ongoing, describing them as constructive, but did note that they will take time.