U.S. and E.U. Suspend Tariffs in Aerospace Dispute for 5 Years

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The U.S. and European Union have reportedly agreed to suspend tariffs related to their long-term dispute over aircraft subsidies for five years. Earlier this year, the two parties had paused the tariffs for four months, but that window was soon set to expire, adding renewed urgency to the situation for companies across multiple industries, including wine and spirits.

The 25 percent tariffs in the long-running aerospace dispute include E.U. levies imposed on U.S. rum, brandy and vodka in November 2020. In addition, the U.S. had imposed 25 percent tariffs 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 U.S. had also tariffed French, Spanish and German wines.

Speaking at the U.S.-E.U. summit in Brussels, European Commission president…

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