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The US has agreed to suspend tariffs imposed on UK goods including single malt whiskies that were imposed in retaliation over subsidies given to the aircraft maker Airbus.

The suspension also covers items like cheese, pork, cashmere and machinery.

The tariffs will be suspended for a period of four months.

On 1 January, the UK had already dropped its own tariffs on some US goods put in place over a related dispute about US subsidies to Boeing.

The Scotch Whisky Association called the suspension “fabulous news”.

Boss Karen Betts said: “The tariff on Single Malt Scotch Whisky exports to the US has been doing real damage to Scotch Whisky in the 16 months it has been in place, with exports to the US falling by 35%, costing companies over half a billion pounds.

“So today, everyone in our industry – from small companies to large – is breathing a sigh of relief.”

However, she said the UK and US would still need to negotiate a long-term settlement to the aerospace dispute.