Latest news with #Faury
New Straits Times
07-05-2025
- Business
- New Straits Times
Airbus chief calls for Boeing tariffs if US-EU talks fail
PARIS: The head of Airbus said on Tuesday that Europe should impose tariffs on imports of Boeing aircraft if negotiations over US President Donald Trump's trade war fail. Trump has rolled out a "baseline" levy of 10 per cent on goods from around the world but he has suspended a higher tariff of 20 per cent on European Union products while the two sides negotiate. If negotiations "do not result in a positive outcome, I imagine that there will be — and that's what we wish — reciprocal tariffs on aeroplanes to force a higher level of negotiation", Airbus chief executive Guillaume Faury told AFP. Faury, who was speaking at a press event by French aerospace industry association Gifas, said any response should be similar to the strategy used in a previous spat during the first Trump administration. Trump imposed a 10 per cent tariff on the European aviation sector in 2019 after the World Trade Organization ruled that the EU had illegally subsidised Airbus, and raised it to 15 per cent in 2020. The WTO later ruled that the United States also provided illegal aid to Boeing. The EU then imposed a 15 per cent tariff on Boeing planes. The tariffs were subsequently lifted under President Joe Biden in 2021. The trade war is "a lose-lose" situation for the aerospace sector but Boeing "would likely" be more affected, Faury said. "This is why I am hopeful that ... things will be resolved," he added.
Miami Herald
06-05-2025
- Business
- Miami Herald
Airbus backs European tariffs on Boeing if talks with US fail
Business Airbus backs European tariffs on Boeing if talks with US fail Europe should impose reciprocal measures on Boeing Co. if negotiations fail to lift recent U.S. tariffs hurting the aerospace industry, according to Airbus SE Chief Executive Officer Guillaume Faury. "Europe is in negotiations, and if these negotiations do not lead to a positive outcome, I imagine that - and this is what we hope for - reciprocal tariffs on aircrafts will be imposed to force a higher level of negotiation and return to the 1979 agreement," he told reporters at an event in Paris. "This would be good for both the U.S. and European industries." Faury was referring to the World Trade Organization civil aircraft treaty that for more than four decades has largely excluded the aviation industry from import duties on commercial aircraft and parts. He didn't specify Boeing but the U.S. manufacturer is a major exporter to Europe, and would stand to feel the bulk of any tariffs imposed on American-made planes. The Airbus CEO also didn't say whether he was calling for a policy response from the European Union, where Toulouse, France-based Airbus is located, or more broadly from the region. The U.S. has placed 10% tariffs on imports from the EU and dozens of major countries like the UK, as the administration of President Donald Trump seeks to negotiate more favorable trading terms. Airbus is feeling the pain from the new measures while European countries have held back from retaliation, shielding archrival Boeing for now from added duties on planes it sends to Europe. Bloomberg News reported on Tuesday that the EU has plans to hit back with about €100 billion ($113 billion) in tariffs on U.S. goods if a satisfactory accord can't be reached. The aviation industry is scrambling to adjust to the U.S. surcharges, which have filtered through an aerospace supply chain to add costs and complexity to transactions that in the past have been duty free. Boeing has been hit by retaliation from China, and executives from U.S. aerospace firms such as engine-maker General Electric Co., a major supplier to both Airbus and Boeing, have been lobbying for the tariffs' removal. "Airbus is also an actor of the civil aviation industry in the U.S. and our imports to the U.S. from other countries are also penalized," Faury said, adding that the tariffs have created uncertainty in the industry and stalled investments. Faury, who heads French Aerospace Industries Association GIFAS, said at a press conference that European regulations also need to be simplified to stoke innovation, investments and competitiveness. EU member states have pledged to boost military spending as the U.S. shows signs of wavering on decade of commitment to alliances in the region. European countries should buy more weapons from the continent, Faury said. He called for more pan-European ventures, such as the satellite business merger under discussion between Airbus, Leonardo SpA and Thales SA. Matters related to sovereignty are not stalling the talks, just adding some "complexity," he said. "We will get there," he said, without giving a definite time for a deal to be reached. Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers. This story was originally published May 6, 2025 at 2:16 PM.
Bloomberg
06-05-2025
- Business
- Bloomberg
Airbus Backs European Tariffs on Boeing If Talks With US Fail
Europe should impose reciprocal measures on Boeing Co. if negotiations fail to lift recent US tariffs hurting the aerospace industry, according to Airbus SE Chief Executive Officer Guillaume Faury. 'Europe is in negotiations, and if these negotiations do not lead to a positive outcome, I imagine that — and this is what we hope for — reciprocal tariffs on aircrafts will be imposed to force a higher level of negotiation and return to the 1979 agreement,' he told reporters at an event in Paris. 'This would be good for both the US and European industries.'
Yahoo
01-05-2025
- Business
- Yahoo
Airbus will avoid Trump tariffs by delivering planes to US airlines in countries outside America, its CEO says
Airbus's CEO said it's exporting US airlines' planes to other countries to avoid tariffs. An A350 for Delta Air Lines is scheduled to fly from Toulouse, France, to Tokyo for delivery. It's the same tactic used during a previous trade war between the EU and the US. Airbus is working to avoid Donald Trump's tariff plan by sending planes to US airlines via other countries. "We're looking at opportunities to export to somewhere else than [the] US, especially for airlines who have international operations, and we have that flexibility," CEO Guillaume Faury said on the company's first-quarter earnings call on Wednesday. He explained that if Airbus sends parts to its final assembly line in Mobile, Alabama, the planemaker has to pay the 10% tariff. Alternatively, if the plane is built in Europe and then sent to the US, the airline would pay the import fee. "There's obviously a contradiction that […] actually nobody wants to pay the additional cost," Faury added. In February, the Airbus boss said that tariff costs would be passed onto airlines, which would, in turn, mean higher ticket prices. However, Delta Air Lines CEO Ed Bastian said on an earnings call last month that the carrier would not pay any tariffs and instead would defer aircraft deliveries. Now, it looks like the two parties have found a way around the conundrum. Flight tracking data shows a new A350-900 for Delta was scheduled to fly Wednesday from Toulouse, France — Airbus' headquarters — to Tokyo's Narita Airport. This flight was canceled, but a new one was scheduled for Saturday, according to data from FlightAware. This is the same tactic that was used when Airbus faced tariffs during a previous trade war between the US and the European Union. "We are doing what we were doing five years ago in a similar situation," Faury said. The World Trade Organisation had permitted tariffs on aircraft as high as 15% as the two sides accused the other of unfair subsidies for Airbus and Boeing, until a truce was struck in 2021. At the time, Delta decided to use new Airbus planes exclusively for international flights, which meant they were never officially imported, as an airline spokesperson told Simple Flying in 2019. On Wednesday's earnings call, Faury called for a return to zero tariffs on all civil aerospace parts and airplanes. Airline stocks have reacted with particular volatility to tariff announcements. Travel is often one of the first things people cut back on during economic uncertainty. Several airlines withdrew their financial forecasts as they announced first-quarter earnings last month. Airbus kept its outlook in place, which excludes tariffs, owing to the uncertainty around the situation. Its first-quarter net income rose by a third to 793 million euros ($898 million), beating expectations, and its share price jumped 2%. Read the original article on Business Insider
Yahoo
01-05-2025
- Business
- Yahoo
Airbus will avoid Trump tariffs by delivering planes to US airlines in countries outside America, its CEO says
Airbus's CEO said it's exporting US airlines' planes to other countries to avoid tariffs. An A350 for Delta Air Lines is scheduled to fly from Toulouse, France, to Tokyo for delivery. It's the same tactic used during a previous trade war between the EU and the US. Airbus is working to avoid Donald Trump's tariff plan by sending planes to US airlines via other countries. "We're looking at opportunities to export to somewhere else than [the] US, especially for airlines who have international operations, and we have that flexibility," CEO Guillaume Faury said on the company's first-quarter earnings call on Wednesday. He explained that if Airbus sends parts to its final assembly line in Mobile, Alabama, the planemaker has to pay the 10% tariff. Alternatively, if the plane is built in Europe and then sent to the US, the airline would pay the import fee. "There's obviously a contradiction that […] actually nobody wants to pay the additional cost," Faury added. In February, the Airbus boss said that tariff costs would be passed onto airlines, which would, in turn, mean higher ticket prices. However, Delta Air Lines CEO Ed Bastian said on an earnings call last month that the carrier would not pay any tariffs and instead would defer aircraft deliveries. Now, it looks like the two parties have found a way around the conundrum. Flight tracking data shows a new A350-900 for Delta was scheduled to fly Wednesday from Toulouse, France — Airbus' headquarters — to Tokyo's Narita Airport. This flight was canceled, but a new one was scheduled for Saturday, according to data from FlightAware. This is the same tactic that was used when Airbus faced tariffs during a previous trade war between the US and the European Union. "We are doing what we were doing five years ago in a similar situation," Faury said. The World Trade Organisation had permitted tariffs on aircraft as high as 15% as the two sides accused the other of unfair subsidies for Airbus and Boeing, until a truce was struck in 2021. At the time, Delta decided to use new Airbus planes exclusively for international flights, which meant they were never officially imported, as an airline spokesperson told Simple Flying in 2019. On Wednesday's earnings call, Faury called for a return to zero tariffs on all civil aerospace parts and airplanes. Airline stocks have reacted with particular volatility to tariff announcements. Travel is often one of the first things people cut back on during economic uncertainty. Several airlines withdrew their financial forecasts as they announced first-quarter earnings last month. Airbus kept its outlook in place, which excludes tariffs, owing to the uncertainty around the situation. Its first-quarter net income rose by a third to 793 million euros ($898 million), beating expectations, and its share price jumped 2%. Read the original article on Business Insider
