Boeing and Airbus compete against each other at the Paris Air Show 2013.

Fabrice Dimier | Bloomberg | Getty Images

The US and the European Union will suspend tariffs for four months in a long-standing dispute over illegal subsidies for Boeing and Airbus, the President of the European Commission said on Friday.

The deal is a step towards resolving the 17-year-old dispute that has resulted in retaliatory tariffs on billions in goods covering a range of exports from both sides of the Atlantic.

European Commission President Ursula von der Leyen said she spoke to US President Joe Biden about the issue on Friday.

“We are both committed to focusing on resolving our aircraft disputes based on the work of our respective sales agents,” she said in a statement. “This is excellent news for companies and industries on both sides of the Atlantic and a very positive signal for our economic cooperation in the coming years.”

The White House did not respond immediately.

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