The EU and the U.S. are working to resolve their dispute over subsidies to aircraft makers by July 10, the EU's trade chief said on Thursday.

"We are working with this deadline in mind. We had intensive and broad discussions on this topic with U.S. Trade Representative Katherine Tai last week and so during today's video conference, she confirmed this timeline," European Commission vice president Valdis Dombrovskis told a news conference.

Both sides suspended their tariffs for four months from March. The suspension runs until July 10, with tariffs re-applying on July 11 if there is no solution.

The decision is also a step toward resolving the 17-year dispute over illegal subsidies for Boeing and Airbus, resulting in retaliatory tariffs on billions of dollars of exports from both sides. 

About $7.5 billion worth of U.S. imports of aircraft, cheese and wine from the EU, and $4 billion worth of EU imports of airplanes, tractors, vodka, rum and tobacco from the U.S. have been affected. 

(With input from Reuters)