U.K. to drop tariffs on US Goods in Airbus-Boeing dispute

The U.K. government said it will drop the tariffs that the EU had imposed on $4 billion of U.S. goods, part of the long-running dispute over illegal aid to aircraft manufacturers Boeing Co. and Airbus SE.

The move is designed to reduce trade tensions with the U.S. and “show that the U.K. is serious about reaching a negotiated outcome,” the Department for International Trade said in a statement. Britain will set its own tariff policy when it completes its split from the EU at year-end.

The tariffs, which target various Boeing models and products including spirits, nuts and tractors, were announced by the EU in November as part of a tit-for-tat escalation against the U.S., which itself imposed levies on $7.5 billion of EU products in 2019. British exports ranging from Scotch whisky to biscuits to clotted cream have suffered from the duties.

Britain is “showing the U.S. we are serious about ending a dispute that benefits neither country,” International Trade Secretary Liz Truss said in the statement. “We want to de-escalate the conflict.”

The U.K. said it will continue to impose tariffs in retaliation to levies placed on Britain’s steel industry by the U.S. Those tariffs target a long list of U.S. items, including steel and aluminum products, plus a range of other goods like textiles and foods.