I was evidently correct when I speculated that the U.S. and European Union would unwind our trade war in the near future, but I was also wrong.
While I expected it could take weeks or months to move on from Trump's trade war, the head of European Commission announced that it's actually happening today.
BRUSSELS (Reuters) - The European Union and the United States have agree to suspend for four months tariffs imposed in a dispute over aircraft subsidies for four months, European Commission President Ursula von der Leyen said on Friday.
Von der Leyen said in a statement that she had spoken by telephone with U.S. President Joe Biden and said both were committed to focus on resolving the dispute.
“This is excellent news for businesses and industries on both sides of the Atlantic, and a very positive signal for our economic cooperation in the years to come,” she said.
While this is only a four month suspension, the tariffs won't be coming back. The suspension will allow both sides to reach a permanent agreement while immediately ending the trade war itself.
There's no better time than now to end Trump's global trade war and that is especially true for this facet of it.
Our tariffs on European goods applied to luxury goods that we're all going to want to consume more of when the coronavirus pandemic is over. We placed tariffs on European cheeses, wines, mustards and luxury apparel like purses. Fancy purses aren't really my thing, but I love cheese, wine, and mustard and this coming summer season is shaping up to be one big party.
We've been paying higher prices with no tangible benefit in return and there's no reason to continue the trade war as it was a war over virtually nothing. It's only a matter of time until Trump's trade war with other parts of world also ends.
The U.S. and Britain previously suspended their tariffs yesterday.