Share Prices & Company Research

Market News

04 Mar 2021 | 14:33

US suspends tariffs on UK products in move to resolve aircraft row

(Sharecast News) - The United States agreed to halt tariffs on UK products for four months in a sign of good faith ahead of talks aimed at resolving a row over subsidies granted to the two countries' aircraft industries. Washington had imposed levies on some British goods such as Scotch whisky under the Trump administration, in response to what it deemed "unfair" subsidies from the European Union to Airbus which it alleged had left US aircraft maker Boeing at a disadvantage.

The suspension only applies to UK goods, said a US administration official. EU goods are not exempt from the temporary halt.

"The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization," a joint statement said.

"This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China."

Airbus spokesman Clay McConnell welcomed the suspension of tariffs.

A British official described that as a "real win" and attributed it to the fact that Britain left the bloc and its policies.

The Scotch Whisky Association also said it welcomed the news.

"The tariff on single malt Scotch whisky exports to the US has been doing real damage to Scotch whisky in the 16 months it has been in place, with exports to the U.S. falling by 35%, costing companies over half a billion pounds," Scotch Whisky Association CEO Karen Betts said.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 30th April 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.