3 days ago
Five nations and EU urge Trump not to impose new aircraft tariffs
Five nations and the EU, as well as airlines and aerospace firms worldwide, have urged the Trump administration not to impose new national security tariffs on imported commercial aircraft and parts, documents released on Tuesday showed.
Airlines and aircraft manufacturers 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 $75bn (R1.32-trillion) for the US industry.
The documents made public by the US commerce department bared concerns about the fallout of possible new tariffs expressed by companies as well as Canada, China, Japan, Mexico and Switzerland, besides the EU.
'As reliable trading partners, the EU and US 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.
Trump has imposed tariffs of 10% on nearly all aircraft 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 manufacturer Boeing cited a recent trade deal unveiled in May with Britain that ensures tariff-free treatment for aircraft and parts.
'The US should ensure duty-free treatment for commercial aircraft and their parts in any negotiated trade agreement, similar to its efforts with the UK,' Boeing told the commerce department in a filing.
Mexico said in 2024 it exported $1.45bn (R25.7bn) in aircraft parts, a 10th of the total, to the US. The EU said it took US exports of aircraft worth about $12bn (R212.72bn), while exporting about $8bn (R141.82bn) 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 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.
'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% domestic supply chain in any country.'
Boeing said it had been increasing US content in its aircraft over the past decade and its newest models, the 737 MAX 10 and 777X, would have 'more than 88% domestically-sourced content'.
The United Auto Workers union, which represents 10,000 aerospace workers, said it supports tariffs and domestic production quotas, adding US aerospace employment has fallen to 510,000 in 2024 from 850,000 in 1990.
'To safeguard the aerospace supply chain across the commercial and defence 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.'
