US and UK agree to suspend tariffs and seek aircraft row resolution

Britain and the United States on Thursday agreed a four-month suspension of retaliatory tariffs imposed on goods like Scotch whisky over a long running aircraft subsidy row, saying they would use the time to resolve the dispute.

The Donald Trump administration had imposed tariffs on an array of EU food, wine and spirits, including on Scotch whisky, which the industry says are putting its future at risk.

"The United Kingdom and the United States are undertaking a four-month tariff suspension to ease the burden on industry and take a bold, joint step towards resolving the longest running disputes at the World Trade Organization," a joint statement said.

"This will allow time to focus on negotiating a balanced settlement to the disputes, and begin seriously addressing the challenges posed by new entrants to the civil aviation market from non-market economies, such as China."

In December, Britain said it would use its new-found freedom outside the European Union to diverge from the bloc's common trade policy towards the United States, deciding to unilaterally suspend tariffs.

"I am delighted to say that our American allies - under their new President and his hard-working staff at the US Trade Representative - have embraced our move to seek a fair settlement," British trade minister Liz Truss said.