5 Year Suspension of Tariffs

We are happy to report that the US and EU have announced that an agreement has been reached to suspend the retaliatory tariffs levied after the WTO decision on the Airbus and Boeing cases for a 5 year period. As you are all aware, we are currently nearing the end of the 4 month suspension period, and it is great news that the suspension should continue for a longer period. The retaliatory tariffs on various imported products from the EU were set at 25% and led to a reduction in the import of many of the tariffed products. The 4 month suspension brought a new surge in volume of the previously tariffed products. The longer suspension should lead to a normalization of import patterns.

US origin products subject to 25% retaliatory tariffs in the EU will also be tariff free under the agreement, excellent news for the US exports of rum, brandy and vodka. This agreement does not affect the tariffs on US whisky exports that fall into a separate trade dispute involving China. 

The European Commission President Ursual von der Leyen stated that the agreement “really opens a new chapter in our relationship because we move from litigation to cooperation on aircraft—after 17 years of dispute." USTR Katherine Tai stated, “Today’s announcement resolves a longstanding trade irritant in the U.S.-Europe relationship."   

We will await the official announcement and will update further as soon as the details are available.