The EU and the United States have reached an agreement to suspend some punitive tariffs on each other. Although the peace agreement has not yet been signed, it is at least a truce, and this gives the economic community the hope of ending the costly trade war between the United States and Europe. The agreement is temporarily valid for four months. This was announced by European Commission President Von der Lein after a telephone conversation with US President Biden on Friday.
Von der Lein said that this is excellent news for the business community and industry on both sides of the Atlantic, “for our economic cooperation in the next few years, this is a very positive signal.” The conclusion of this agreement is an achievement that von der Leinne urgently needs. Due to the chaotic procurement of the new crown vaccine, she has received fierce criticism in recent weeks.
According to reports, German Federal Minister of Economy and Energy Altmeier expressed the same views as Von der Lein. He said that the suspension of mutual punitive tariffs “brings hopeful signals for transatlantic relations.”
The trade scale involved in the suspension of punitive tariffs amounts to US$11.5 billion. Now, the moratorium creates an opportunity for the final resolution of the dispute. The European Commission’s Executive Vice-President for Economic Affairs Don Brovskis said on Twitter that this decision is a “key breakthrough, bringing a gratifying tailwind for EU exporters, and also for both parties to resolve this protracted conflict. Provides time and space”.
The White House emphasized in a memo after the phone call between US and European leaders that Biden emphasized his commitment to repair and revitalize the partnership between the two parties. He had previously declared this to be one of his diplomatic priorities.
According to reports, the European Union now hopes that the United States under the leadership of the new president will also be willing to compromise in other trade disputes. The punitive tariffs imposed by the Americans on steel and aluminum and the corresponding retaliatory tariffs imposed by the Europeans obviously continue to be effective. It is also possible for the United States and the European Union to reach an agreement on this issue. Tariffs cause prices to rise, and they hit businesses and consumers, usually only losers.