There is good news for well-known Irish brands such as Baileys and Kerrygold with the suspension of US tariffs.

Irish dairy exports to the United States had been hit by the duties, which were announced in 2019 as part of an ongoing trade dispute between the EU and the US over aircraft subsidies.

Both sides have agreed to a four-month suspension of the US tariffs affecting $7.5 billion worth of EU goods, and the European Union duties that had been imposed on $4bn worth of American products.

The agreement followed a phone call between the US President Joe Biden and the European Commission President Ursula von der Leyen.

The Irish Government has welcomed the suspension of tariffs with the Minister for Agriculture, Food and the Marine Charlie McConalogue acknowledging the work of the Irish Embassy in Washington in seeking to resolve the dispute.

"Today's announcement is a great opportunity, for both the EU and United States, to engage in a constructive dialogue to find a permanent resolution to these long running disputes," he said.

The 25% tariff had been applied to exports of Irish butter, cheese and cream to the US.

The value of Irish agri-food exports impacted by the tariffs was around €422 million.