Both sides agreed to remove the tariffs for five years until they continue discussions on an overarching deal on the subsidies.
On Tuesday, the European Union (EU) and the United States held their first summit in seven years in Brussels.
U.S. President Joe Biden, European Council President Charles Michel, and European Commission President Ursula von der Leyen agreed to cooperate more on trade, investment and preparation for future global health challenges.
Von der Leyen said that bilateral trade and investment between the two sides were "unrivaled," and the trade was worth almost one trillion euros in 2020 despite the COVID-19 pandemic.
The EU and the U.S. agreed on a truce in their long-standing conflict over aircraft subsidies. The dispute over subsidies for U.S. planemaker Boeing and its European rival Airbus has resulted in parallel cases filed at the World Trade Organization (WTO) since 2004.
Both sides had agreed in March to a four-month suspension of tariffs on US$11.5 billion of goods from EU wine to U.S. tobacco and spirits, which they had imposed during the dispute.
US #trade deficit narrowed $6.1bn to $68.9bn in April, after reaching a record-high in March:— Gregory Daco (@GregDaco) June 8, 2021
⬇️Import goods volumes -2.7% led by autos and consumer goods. Services up slightly
⬆️Export goods volumes +0.3% after +7.3% March as capital, industrial goods ⬆️offset by weaker autos pic.twitter.com/CBGo67VLdt
During the summit, both sides agreed to remove the tariffs for five years until they continue discussions on an overarching deal on the subsidies.
They also agreed to establish an EU-U.S. Trade and Technology Council with a view to expand bilateral trade and investments and discuss how to avoid new unjustified technical barriers and how to cooperate in areas with high potential from both economies.
The leaders set a Joint Transatlantic Agenda for the post-pandemic era and commit to regular dialogue to take stock of progress. On the COVID-19 vaccines, they agreed to set up a joint task force to move faster and quicker to help vaccinate the world.