The US and European Union (EU) announced a four‑month suspension of all tariffs related to the long‑running dispute about unfair government support for leading aerospace companies Airbus and Boeing, signaling President Joe Biden's desire to realign trade relations. This pause came on the heels of a similar agreement between the US and the UK.
The timing of this early breakthrough may improve prospects of the Biden administration reaching a longer‑term agreement with the EU to resolve key trade challenges - such as taxation of mega‑cap US internet companies' international revenues and the steel and aluminum tariffs imposed by former President Donald Trump's administration.
Nevertheless, the process of fully restoring diplomatic and trade relationships with traditional US allies likely will extend far beyond a single presidential term.
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