Negotiations continue as a 2021 truce on $11.5 billion in tariffs nears expiration, risking renewed trade tensions.
The United States and European Union must decide by June 15 whether to extend a suspension of $11.5 billion in tariffs tied to a long-running dispute over aircraft subsidies. The truce, agreed in 2021, paused retaliatory measures authorized by the World Trade Organization, including $7.5 billion in U.S. tariffs on EU goods and $4 billion in EU tariffs on U.S. imports.
The dispute dates back to 2004, when both sides accused each other of unfair subsidies to Boeing and Airbus. While the 2021 agreement aimed to resolve the conflict within five years, discussions have stalled, raising concerns over renewed trade barriers. Aircraft and aircraft parts remain exempt from current fees.
Markets are monitoring the outcome, as failure to extend the truce could escalate trade tensions and disrupt supply chains for affected goods, including agricultural products and spirits.