Five nations and EU urge Trump not to impose new airplane tariffs

Straits Times

a day ago

President Donald Trump has already imposed tariffs of 10 per cent on nearly all airplane and parts imports. PHOTO: REUTERS
Five nations and EU urge Trump not to impose new airplane tariffs
WASHINGTON - Five nations and the European Union, as well as airlines and aerospace firms worldwide, urged the Trump administration not to impose new national security tariffs on imported commercial planes and parts, documents released on June 10 showed.
Airlines and planemakers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement that has yielded an annual trade surplus of US$75 billion (S$96.5 billion) for the US industry.
The documents made public by the US Commerce Department bared concerns over the fallout of possible new tariffs expressed by companies as well as nations such as Canada, China, Japan, Mexico and Switzerland, besides the European Union.
'As reliable trading partners, the European Union and United States should strengthen their trade regarding aircraft and aircraft parts, rather than hinder it by imposing trade restrictions,' the EU wrote.
It would consider its options 'to ensure a level playing field', it added.
Mr Trump has already imposed tariffs of 10 per cent on nearly all airplane and parts imports.
'No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors,' the Chinese government wrote.
Separately, US planemaker Boeing cited a recent trade deal unveiled in May with Britain that ensures tariff-free treatment for airplanes and parts.
'The United States should ensure duty-free treatment for commercial aircraft and their parts in any negotiated trade agreement, similar to its efforts with the United Kingdom,' Boeing told the Commerce Department in a filing.
Mexico said in 2024 it exported US$1.45 billion in aircraft parts, just a tenth of the total, to the United States. The EU said it took US exports of aircraft worth roughly US$12 billion, while exporting about US$8 billion of aircraft to the US.
In early May, the Commerce Department launched a 'Section 232' national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.
Last week, Delta Air Lines and major trade groups warned of tariffs' impact on ticket prices, aviation safety and supply chains.
'Current US tariffs on aviation are putting domestic production of commercial aircraft at risk,' Airbus Americas CEO Robin Hayes said in a filing.
'It is not realistic or sensible today to create a 100 per cent domestic supply chain in any country.'
Boeing said it had been increasing US content in its airplanes over the last decade and its newest airplanes, the 737 MAX 10 and 777X, would have 'more than 88 per cent domestically-sourced content'.
The United Auto Workers union, which represents 10,000 aerospace workers, said it supports tariffs and domestic production quotas, adding that US aerospace employment has fallen to 510,000 in 2024 from 850,000 in 1990.
'To safeguard the entire aerospace supply chain across the commercial and defense sectors, comprehensive tariffs and production quotas on several products are needed,' it said.
JetBlue Airways opposed new tariffs, however, saying, 'Trade policy should reinforce, not destabilise, the proven systems that keep our aircraft flying safely and affordably.' REUTERS
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