U.S. and Europe temporarily suspend tariffs on food, alcohol, airplanes
Published 11:15 am Monday, March 8, 2021

- Wine bottles at Hyland Estates Winery. The Oregon Legislature has increased the direct-to-consumer shipping limit from two cases per month to five cases.
The U.S. and the European Union have agreed to temporarily suspend tariffs in the long-standing Airbus-Boeing dispute.
The decision will temporarily halt levies on billions of dollars of products, including agricultural goods, that got caught up in the retaliatory trade war.
The U.S. will pause tariffs on European wine, whiskey, cheese, olives and other goods. In exchange, the EU will lift duties on U.S. wine, nuts, cherries and other products.
Western U.S. wine industry leaders, who have long pressed for an end to tariffs on alcohol, welcomed the decision.
EU Commission president Ursula von der Leyen said in a statement that after remote talks with U.S. President Joe Biden, both sides “committed to focus on resolving our aircraft disputes, based on the work of our trade representatives.”
The suspension, von der Leyen said, will last an initial period of four months while a long-term settlement is under negotiation.
“This is excellent news for businesses and industries on both sides of the Atlantic, and a very positive signal for our economic cooperation in years to come,” she said.
In a statement, the White House said Biden had “underscored his support for the European Union and his commitment to repair and revitalize the U.S.-EU partnership.”
The Biden administration said it will aim to restore ties with the EU, formerly a closer ally, and together focus on bigger global problems, like China’s unfair trade practices.
“Finally, we are emerging from the trade war between the United States and Europe, which created only losers,” Bruno Le Maire, the French finance minister, wrote on Twitter.
In a joint statement with the EU, the Office of the U.S. Trade Representative said the temporary suspension would begin “as soon as the internal procedures on both sides are completed.” The statement also the two sides would work together to reach a solution to the disputes, which would include rules on future aircraft subsidies, monitoring and enforcement.
The aircraft trade dispute between the U.S. and Europe began in 2004, when the U.S. filed a complaint with the World Trade Organization, claiming that the EU’s subsidies for Airbus put Boeing at a disadvantage.
In 2019, the WTO authorized the U.S. and Europe to impose tariffs on each other as part of the disputes — and that’s precisely what they did.
Under former President Trump, the trade war escalated. The EU had imposed tariffs on roughly $4 billion in American products, while the U.S. levied tariffs on about $7.5 billion of European goods.
Wine industry leaders across California, Oregon and Washington have told the Capital Press for many months that the trade dispute has hurt U.S. wine importers and distributors, which in turn had ripple effects that hurt domestic wine producers. To wine industry leaders especially, the temporary pause and potentially long-term settlement is a welcome development.