US and EU suspend tariffs in Boeing Airbus row

The United States and European Union (EU) have agreed to suspend for four months all tariffs related to the long-running dispute over subsidies to Boeing and Airbus.

The suspended tariffs mark a first step toward repairing a trans-atlantic trade partnership that's been strained for nearly 17 years by complaints on both sides about subsidies to the world's leading commercial plane makers.

The tariffs affect $7.5 billion of EU exports to the US and $4 billion worth of US exports to the EU.

"It marks a reset in our relationship with our biggest and economically most important partner_" European Commission Trade Commissioner Valdis Dombrovskis said in a statement. " Removing these tariffs is a win-win for both sides_ at a time when the pandemic is hurting our workers and our economies."

The agreement comes a day after the US struck a similar agreement with the United Kingdom to suspend tariffs on UK products including Scotch whisky.

The dispute dates back to 2004_ when EU authorities said Boeing had received $19 billion in unfair subsidies from federal and state governments. The US government filed a similar claim that year over European subsidies to Airbus.

Last year_ the feud escalated when the Trump administration imposed tariffs on European goods_ including Parmesan cheese_ French wine and Scotch and Irish whiskies. The EU_ in turn_ slapped tariffs on US goods.

Friday's announcement was made following a phone call between the President of the European Commission_ Ursula von der Leyen and US President Joe Biden_ according to a statement from the commission.