Source: POLITICO'S MORNING AGRICULTURE, 3/8/21

The Biden administration has reached an agreement with the EU to temporarily suspend tariffs on billions of dollars in goods stemming from the longstanding dispute over airline subsidies, following a similar deal with the U.K. last week. It’s one of Biden’s first steps to ease trade tension with Europe that built up under former President Donald Trump, writes Pro Trade’s Doug Palmer.

In both cases, duties will be paused for four months while the White House negotiates a long-term settlement with Brussels and London. The thaw provides some relief to many importers and exporters — especially food and beverage companies caught in the crossfire of a dispute unrelated to their industries.

Not going down smooth: American whiskey sales to the EU, however, are still subject to a 25 percent tariff that was imposed as retaliation for Trump’s steel and aluminum duties. The whiskey tariff is also set to double at the beginning of June if the U.S. metal duties stay in place.

— Lisa Hawkins, senior vice president at the Distilled Spirits Council, said the new agreement was a “promising breakthrough” but the group is “extremely disappointed” that the whiskey duties remain.

For what it’s worth: Agriculture Secretary Tom Vilsack said Friday that the easing of tariffs could “open the door” to trade deals with the EU and U.K. if those governments are open to allowing more access to U.S. farm goods — a major sticking point in previous talks.