London Daily

Focus on the big picture.
Sunday, Aug 30, 2026

US, EU Commit to Ending $18 Billion Tariff War Before End of Year

US, EU Commit to Ending $18 Billion Tariff War Before End of Year

The decision by Washington and Brussels to resolve all outstanding trade disputes before the end of the year comes after the European Union decided in May to waive automatic increases in tariffs on some US-made goods.

The US and EU will commit to ending their trade disputes and removing tariffs on aluminum and steel before the end of 2021, according to Bloomberg News, which viewed a document about the upcoming June 15 EU summit US President Joe Biden will attend.

According to the report, the topics set to be resolved include a dispute over state support for aircraft maker Airbus by the governments of Spain, France, Italy, and the UK. The World Trade Organization authorized US tariffs against $7.5 billion in EU exports in 2019, and the EU in turn was authorized to impose $4 billion of its own tariffs on US goods. In March, the US and EU reached an agreement to suspend tariffs on Airbus and Boeing for four months.

As early as December 2020, UE officials reached out to US President-elect Joe Biden about a change in trade policy between the US and the 27-member bloc. The dispute dates to 2018, when then-US President Donald Trump imposed a 10% trade penalty on aluminum and a 25% penalty on steel imported from the EU, calling them a threat to national security.

However, in response to the tariffs, the EU imposed its own on US goods in retaliation, including peanut butter, bourbon, denim, orange juice, and motorcycles, among other goods.

Trump imposed similar tariffs on China, not all of which were resolved by the Phase 1 trade deal agreed to in January 2020. The tariffs were part of his same populist appeal to sections of the US manufacturing sector, to whom he said he was saving American jobs by protecting US industries from foreign competition, which he called "unfair."

Biden Continues Pressure on Nord Stream 2


In May, the Biden administration also decided to drop sanctions imposed by Trump against Swiss pipelaying firm Allseas for its work on the Nord Stream 2 pipeline that caused the company to withdraw from the project. The 745-mile-long pipeline will carry up to 55 billion cubic meters of Russian natural gas to Germany annually. Washington has claimed the pipeline is a tool for Russia to apply political leverage over Western Europe and a deliberate bypassing of another pipeline through Ukraine, but Moscow has said the venture is purely economic in scope.

Russia is the world's second-largest producer of natural gas after the US and the largest provider of European gas. In 2018, Trump successfully pressured Berlin into building a liquified natural gas (LNG) facility and accepting US exports, and in December 2019 imposed sanctions on companies working with Russian state-owned firm Gazprom on Nord Stream 2.

However, while Biden dropped the Trump-imposed sanctions, he also imposed blacklisted 13 Russian ships and three Russian firms working on the project. US Secretary of State Antony Blinken said on Monday the US could also rescind a waiver given to Nord Stream AG, the company overseeing construction of the pipeline, if Russia were to "use gas as a coercive tool or weapon against Ukraine or anyone else."

On Friday, Russian President Vladimir Putin revealed the first leg of the $11 billion pipeline had been completed, in spite of pressure from Washington.

Newsletter

Related Articles

0:00
0:00
Close
UK Officials Highlight 80 Years of Diplomatic Relations With Philippines
Heavy Rain Disrupts Parts of England After Weeks of Extreme Summer Heat
More Than 200 Extra Police Officers Deployed Across Cleveland After Violent Incidents
Burnham Meets Northern Ireland Leaders for Talks on Economy and Youth Employment
Burnham to Abstain From UK Assisted Dying Vote
NHS Leaders Warn of Severe Financial and Staffing Pressures Ahead of Autumn
UK Treasury Prepares October Budget as Defense and Public Spending Pressures Mount
Scottish Government Publishes Draft Bill for Second Independence Referendum
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
UK and Ukraine Agree AI-Focused Defense Technology Partnership
US Reportedly Weighs Falkland Islands Policy Shift to Pressure UK Over NATO Spending
UK Government Mobilizes Emergency Aid as British Nationals Remain Missing After Nepal Floods
UK Hospitality Industry Reports Stronger Summer Trading but Seeks Tax Relief
Reform UK Proposes £30 Tax Credit for Long HMRC Helpline Waits
Labour Debates Caps on Political Donations Ahead of Future Elections
England Accelerates Housing and Planning Reforms Amid Affordability Crisis
NHS Expands Walk-In Community Health Centers to 40 Locations
UK Regulators Expect Meta to Apply Stronger Child Safety Standards Globally
UK Groups Demand Faster Transport Decarbonization After Extreme Summer Weather
UK Launches 10,000 Work Experience Placements as Youth Unemployment Concerns Rise
UK Government Faces Difficult Autumn Budget Choices Over Defense, Spending and Taxes
UK Government Rejects Calls to Slow AI Data Center Expansion
IMF Raises UK Growth Forecast to 1% Despite Global Supply Chain Risks
UK Unsecured Loan Defaults Reach Highest Level Since 2009
UK Energy Price Cap to Rise 4% to Three-Year High of £1,723
More Than 30 Britons Reported Missing After Deadly Nepal-Tibet Floods
Royal Navy Tracks Russian Warships and Sanctioned Vessels in 72-Hour Operation
Police Intensify Investigation Into Organised Crime-Linked Violence in Middlesbrough
UK Small Businesses Face Continued Revenue and Tax Pressures, Federation Says
M&G Real Estate Buys West Sussex Affordable Housing Portfolio for £29 Million
Royal Navy Warship HMS Tamar Visits Cambodia for Regional Security Engagement
UK Government Brings Forward Benefit Payments Ahead of August Bank Holiday
Four Men Plead Guilty to Arson Attack on Jewish Community Ambulances in North London
Ofgem Raises Great Britain’s Household Energy Price Cap by Four Percent From October
UK Government Rejects Green Party Call for Artificial Intelligence Datacentre Moratorium
Millions of UK Benefit Recipients Receive Payments Early Ahead of August Bank Holiday
UK Prime Minister Meets Northern Ireland Leaders in Belfast Over Budget Crisis
Crypto Tax Gains Reach One Point Three Eight Billion Pounds Among UK Investors, HMRC Data Shows
UK Corporate Confidence Rises to Highest Level Since March, Lloyds Survey Shows
Mike Ashley Attacks UK Government Business Rates and Cost-of-Living Policies
Scottish Universities Face Two Hundred Million Pound Annual Funding Gap, Report Warns
Entertainment Figures Urge UK Government to Protect People From AI Voice Cloning
Manchester Airports Group Confirms Customer Data Breached in Cyberattack
Seven Charged Over Vandalism at Donald Trump’s Turnberry Golf Resort in Scotland
Nearly 23,000 UK Households Expected to Move Home on Busiest Day of 2026
UK Benefit Payments to Arrive Early Ahead of August Bank Holiday
Reform UK Pledges to Replace GDPR and Cut Tax Administration Red Tape
Andy Burnham Launches Work Experience Plan for One Million Young People Outside Education or Work
Andy Burnham Faces Labour Backlash After Dropping Support for Political Donations Cap
Andy Burnham Announces UK-Wide Summit With Leaders of Scotland, Wales and Northern Ireland
×