© Reuters. FILE PHOTO: British and American flags on display in Los Angeles

LONDON (Reuters) – Britain said on Thursday its decision to suspend retaliatory tariffs against the United States was already bearing fruit after it was spared in a new round of U.S. tariff increases which hit French and German produce.

Britain said earlier this month it would use its new-found freedom outside the European Union to diverge from common EU trade policy towards the United States, deciding to unilaterally suspend tariffs relating to a 16-year dispute on aircraft subsidies.

The U.S. government on Wednesday said it would raise tariffs on certain EU products, including aircraft components and wines from France and Germany, arguing that the EU had unfairly calculated its own tariffs.

“The UK wasn’t hit because we suspended tariffs and brought the U.S. to the negotiating table,” a British official said. “(This) shows we are making the right strategic decisions.”

The United States and EU have already imposed tariffs on billions of dollars of each others’ goods over a row about state subsidies provided to civil aviation firms Boeing (NYSE:) and Airbus. Those tariffs remain in place.

British trade minister Liz Truss has repeatedly spoken out against the measures, earlier rounds of which have hit British exports such as Scotch whisky. Germany has also recently called for a quick resolution to the dispute.

The British decision to suspend tariffs on U.S. goods from Jan. 1, once Britain fully leaves the EU, upset European planemaker Airbus and exposed a growing rift between the UK and Europe over aerospace investment, industry sources and analysts said.

See also  Burger King tests loyalty program as part of digital push
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here