UK to suspend retaliatory tariffs on US goods to ease aircraft trade row

LONDON (Reuters) – Britain will suspend retaliatory tariffs imposed on U.S. goods as part of a dispute over aircraft subsidies from Jan. 1, the trade department said, describing the move as an attempt to de-escalate a damaging international trade conflict.

The decision marks the start of Britain’s divergence from European Union trade policy, coming into effect on the day its exit from the bloc’s rules and regulations is complete, and signals an ambition to forge closer ties with the United States.

The multi-billion dollar tit-for-tat tariff battle between the United States and the European Union relates to a long-running row over state subsidies for aircraft manufacturers Airbus and Boeing.