Longer suspension of US-EU tariffs announced
By Andy Brown21 June 2021
The US and the EU have announced an agreement to a five-year suspension of mutual retaliatory tariffs on trade worth billions of dollars.
The duties, imposed in October 2019 and November 2020 on €11 billion (US$13 billion) of overall trade value, originated from the longstanding dispute over illegal subsidies to airline companies Airbus and Boeing.
US President Biden has adopted a more conciliary tone with the EU than his predecessor, Donald Trump. Talking about his country’s relationship with the EU Biden said, “I think the future is very, very bright, we have the opportunity to do some very good things.”
The tariffs had a negative impact on the construction industry in both the US and EU. The US included several categories of construction machinery in their list of products and the EU reciprocated, imposing duties on certain equipment imported from the US.
CECE Secretary General Riccardo Viaggi, said, “After a first four-months suspension announced in March, this is exactly the positive result we have all been working towards. Indeed, in the last two years, we have been engaging with our industry partners in the EU and in the US, so we are now glad to see it has paid off.
“These retaliatory tariffs were causing serious economic harm on both sides of the Atlantic, increasing tensions and decreasing economic opportunities. This five-year suspension can boost trade, accelerate economic recovery and reinstate the transatlantic relationship for even further progress towards a stronger trading partnership.”
At the recent G7 Summit the US was among the countries who committed to a new global infrastructure push.