France Suggests Pause on US-EU Trade Standoff

A long-running tariff dispute should be "paused" by the European Union and the US to allow the matter to be resolved, France's foreign minister suggested on Sunday.

Under the Donald Trump administration, a 16-year spat over aircraft subsidies has turned increasingly sour, extending to other goods and industries, and France's suggestion comes ahead of the inauguration of President-elect Joe Biden in the coming week.

“The issue that poisons everyone is that of the price increases and taxes on steel, digital technology, Airbus and particularly our wine sector,” said foreign minister Jean-Yves Le Drian in an interview with the Journal du Dimanche.

“If we could quickly find a method to settle this dispute with Europe and France, that would be a step forward,” he said. “It may take time but, in the meantime, we can always order a pause.”

New tariffs on aircraft parts, wine, cognac and brandies from France and Germany were revealed by Washington at the end of the year, adding to the long list of EU goods subject to 25% customs duties from 2019.

The US said the move was in retaliation for the tariffs levied by the EU in November, which it considered to be unjustified and unfairly measured.

The latest tariffs go into effect some days after the end of Trump’s term.