European leaders and President Joe Biden will reportedly commit to ending trade wars that have imposed tariffs on more than $18 billion in exports when the two sides meet June 15 in Brussels.
The two sides have battled for years on issues including subsidies on aircraft manufactured by Boeing (BA 0.19%) and Airbus (EADSY 0.86%), with the tariff wars expanding since 2018 to include levies on European metals and American-made Harley-Davidson (HOG 3.87%) bikes and Levi Strauss (LEVI 0.92%) jeans.
But the Biden administration has made it a priority to calm these tensions, and the two sides earlier this year agreed to suspend aircraft tariffs until July to allow time for negotiations. According to a Bloomberg report, a draft of the conclusions planned for next week's summit includes a commitment to removing all tariffs before the year's end.
Negotiations could still break down, but the U.S. and European Union appear more focused on finding new ways to work together. According to the report, the two sides will announce a partnership aimed at boosting supplies of semiconductors in both regions.
A truce would be welcome news for all companies involved, but especially for Boeing and Airbus, which have been engaged in subsidy battles for nearly two decades. With their airline customers currently struggling following the pandemic, both aircraft suppliers have expressed an interest in reducing the cost of planes.