Aviation Trade Tensions Between EU and US Ease
Aviation Tariffs Lifted for Five Years
Trade tensions between the US and the European Union are easing, with both sides agreeing to suspend a long-running trade dispute over government subsidies to Boeing (BA) and Airbus (EADSY).
Under the agreement, the tariffs, which have cost US importers more than $1.1 billion since they went into effect in 2019, will be suspended for five years. The truce is part of a broader effort to improve relations between the US and the European Union.
Boeing, Airbus Stand to Win
The transatlantic deal could not come at a better time for Boeing and Airbus. Both aircraft manufacturers were hit hard by the pandemic and are looking toward a somewhat uncertain future. They are also looking for ways to innovate and grow. For example, Boeing is mulling the launch of a new jetliner. Both companies applauded the settlement between the US and the EU, saying it creates a level playing field.
The US and EU are entering a friendlier stage of their relationship in the aviation space. It will be interesting to see if the agreement results in other trade tensions easing in the months to come.
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