On March 5, an agreement was struck between the U.S. and European Union to suspend tariffs on a variety of products, including some types of construction and other heavy equipment. The tariffs were enacted in relation to an ongoing Boeing-Airbus trade dispute.
Both parties agree this will help to improve the trade relationship between the U.S. and EU, as well as the manufacturers who have been negatively impacted by the tariffs.
The two parties have agreed to a 4-month suspension of the tariffs, and will continue to work toward a mutually beneficial solution.
Association of Equipment Manufacturers (AEM) President Dennis Slater issued a statement after the agreement was announced applauding the efforts to come to a better resolution. “These tariffs have needlessly hurt the equipment manufacturing industry and caused real economic harm to both workers and farmers in communities across the country. There are no winners in a trade war, only losers. The bilateral trade and investment relationship between the United States and the European Union is critical to both partners’ long-term security and prosperity. We are grateful for the Office of the United States Trade Representative efforts to provide our industry with immediate tariff relief as it continues to negotiate a permanent solution. Equipment manufacturers are ready to work with the Biden-Harris administration as they work to further reduce barriers to trade, open up more markets, and strengthen the trans-Atlantic trade relationship.”
In January, several trade associations from the U.S. and Europe sent a letter to U.S. President Biden and European Commission President Ursula von der Leyen urging an end to the tariffs, noting the negative impact it was having on equipment manufacturing and other industries.
According to a joint statement from the EU and U.S., the tariff suspension will ease the burdens that have been placed on various industries and their workers impacted by the Boeing-Airbus disputes. Per the EU and U.S. statement "Key elements of a negotiated solution will include disciplines on future support in this sector, outstanding support measures, monitoring and enforcement, and addressing the trade distortive practices of and challenges posed by new entrants to the sector from non-market economies, such as China."