Following yesterday’s news on the suspension of tariffs on UK goods, today the United States and the European Union issued a joint statement to suspend retaliatory tariffs on goods in connection to the Boeing/Airbus aircraft dispute.
The agreement suspends for four months the 25% tariffs imposed by the E.U. on U.S. rum, brandy, and vodka in November 2020. In addition, the U.S. is suspending the 25% tariffs imposed on liqueurs and cordials from Germany, Ireland, Italy, and Spain in October 2019, and on certain Cognacs and other grape brandies from France and Germany in January 2021. The deal also suspends U.S. tariffs on French, Spanish, and German wines.
However similar to the UK position, the suspension on aircraft related tariffs does not change the EU’s retaliatory tariffs on American Whiskey still in effect in response to the US 232 steel and aluminum tariffs.
The press release notes that it will be effective “as soon as the internal procedures on both sides are completed”. We assume this means that the Harmonized Tariff Schedule must be revised and Customs & Border Patrol ACE system updated for imports, and the similar procedures for exports. We will update when further information is available.
View press release on Office of the U.S. Trade Representative here