The UK will drop tariffs against the US over subsidies for aerospace firms, in a bid to reach a post-Brexit trade deal with Washington.

In November, the EU hit $4bn of US goods with duties of up to 25% in retaliation for illegal state aid given to planemaker Boeing.

They will be suspended in the UK from 1 January - when the current post-Brexit transition period ends.

"An encouraging step"

Scottish Whisky Association chief hails UK move to drop tariffs against US in bid for post-Brexit trade deal.https://t.co/mbEmU3MUpg

— BBC Scotland News (@BBCScotlandNews) December 9, 2020

International Trade Secretary Liz Truss said the UK wanted to find compromise.

"As an independent trading nation once again, we finally have the ability to shape these tariffs," she said.

"Ultimately, we want to de-escalate the conflict and come to a negotiated settlement so we can deepen our trading relationship with the US and draw a line under all this," she added.

The fight over aircraft subsidies to Boeing and European rival Airbus pre-dates outgoing US President Donald Trump's time in office, but trade tensions between the two allies have become strained recently.

Donald Trump's administration hit the European Union (EU) with tariffs on $7.5bn worth of goods in retaliation for state support given to Airbus. Products such as Scotch whisky were affected by the ongoing row.

However, Airbus said in a statement on Wednesday that it was "disappointed" the UK made the decision without "securing some reciprocal action to resolve this dispute".

The company, which has a huge UK factory making aircraft wings, said: "A negotiated settlement is the best way to achieve a lasting resolution and governments in the UK, Europe and the US must work together to reach this goal."