Latest news with #Rolls-RoyceRR.L
Yomiuri Shimbun
10-05-2025
- Business
- Yomiuri Shimbun
US Opens National Security Probe into Imported Commercial Jets, Engines
Reuters file photo United States Department of Commerce logo and U.S. flag are seen in this illustration taken April 23, 2025. WASHINGTON, May 9 (Reuters) – The U.S. Commerce Department said on Friday it has opened a national security investigation into the import of commercial aircraft, jet engines and parts. The 'Section 232' investigation, which was opened on May 1 but not publicly disclosed previously, could be used as a basis of even higher tariffs on imported planes, engines and parts. Several airlines said they were unaware of the probe before it was disclosed late on Friday. Airlines and manufacturers have been lobbying President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement, under which the U.S. sector enjoyed a $75 billion annual trade surplus. Most imported airplanes and components from around the world now face 10% tariffs. A deal in principle struck with the United Kingdom on Thursday will allow British-made Rolls-Royce RR.L engines to enter the U.S. duty-free, Commerce Secretary Howard Lutnick said. The commerce department said on Friday it wants public comment within three weeks on a series of questions including on 'the impact of foreign government subsidies and predatory trade practices on the competitiveness of the commercial aircraft and jet engine industry.' Aerospace Industries Association CEO Eric Fanning said in response the group will engage with the department 'to identify opportunities to strengthen our domestic supply chain while also maintaining the trade framework that has enabled our global leadership in aerospace.' Airline executives have raised the possibility of returning leased planes and deferring aircraft deliveries. Delta Air Lines DAL.N is also unwilling to pay tariffs on aircraft deliveries. U.S. assembled planes are not immune, as aircraft makers must pay levies on imported parts. Boeing BA.N is paying 10% duty on supplies from Italy and Japan. United Airlines UAL.O CEO Scott Kirby said last month that Airbus has had to pay tariffs on planes it is building in Alabama. Airbus and Boeing did not immediately comment on Friday. Aerospace industry officials say their situation differs from other industries, as their sector exports more than $135 billion of products annually. GE Aerospace CEO Larry Culp told Reuters in April he met with Trump and explained to him how the industry's decades-old duty-free status helped it produce the highest trade balance of any sector. The company said on Friday it 'will continue to work with the administration on efforts to preserve America's global leadership in aerospace.' Last month, the department opened a similar probe into the national security impact of imports of medium-duty and heavy-duty trucks and related parts.
Business Recorder
09-05-2025
- Business
- Business Recorder
Trump heralds ‘breakthrough' deal with UK
LONDON/WASHINGTON: US President Donald Trump and British Prime Minister Keir Starmer on Thursday announced a 'breakthrough deal' on trade that leaves in place a 10% tariff on goods imported from the UK while Britain agreed to lower its tariffs to 1.8% from 5.1% and provide greater access to US goods. The agreement announced by Trump from the Oval Office marked the first since Trump triggered a global trade war with a barrage of levies on trading partners following his return to the White House in January. 'It opens up a tremendous market for us,' Trump said. 'This is a really fantastic, historic day,' Starmer said by teleconference. The United States has been under pressure from investors to strike deals to de-escalate its tariff war after Trump's often chaotic policymaking upended global trade with friends and foe alike, threatening to stoke inflation and start a recession. Top US officials have engaged in a flurry of meetings with trading partners since the president on April 2 imposed a 10% tariff on most countries, along with higher rates for many trading partners that were then suspended for 90 days. The US has also imposed 25% tariffs on autos, steel and aluminium, 25% tariffs on Canada and Mexico, and 145% tariffs on China. US and Chinese officials are due to hold talks in Switzerland on Saturday. WARM RELATIONSHIP With the British economy struggling to grow, the tariffs had added to the pressure on his government. Jaguar Land Rover paused its shipments to the US for a month and the government was forced to seize control of British Steel to keep it operating. The deal will reduce US tariffs on British auto imports to 10% from the current 27.5% according to a UK statement. The lower rate will apply to a quota of 100,000 British vehicles, almost the total exported to the US last year. US tariffs on imports from the struggling UK steel industry will fall to zero from 25%, while British tariffs on US ethanol will fall to zero from 19%. Both sides have agreed new reciprocal market access on beef – with UK farmers given a tariff-free quota for 13,000 metric tonnes. There will be no weakening of UK food standards on imports. Commerce Secretary Howard Lutnick said that Britain is expected to announce a purchase of $10 billion worth of US-assembled Boeing aircraft , although a White House graphic referred to 'aircraft parts.' In turn, Lutnick said that the US will allow duty-free imports fo Rolls-Royce RR.L jet engines. Lutnick said that the deal would create $5 billion in new annual export opportunities for American producers, while the new tariffs that stay in place would produce $6 billion in annual new US revenue. While seeking a deal with the US, Britain had refused to lower its food standards, which are closely aligned with the European Union. However, Britain's farming trade union has said that some US producers who do not use growth hormones or antimicrobial washes could be given greater market access. Trump said the 10% 'baseline' tariff would stay in place and that other countries may face higher reciprocal tariffs even as they negotiate similar trade deals with the US Details were scant on tariffs on UK pharmaceuticals imports, which could damage AstraZeneca and GSK, although a White House fact sheet said the deal would create a secure pharma supply chain. Initial news of an announcement sent shares in luxury carmaker Aston Martin up 10%, while British retailers with operations in the US, including JD Sports and Primark owner AB Foods, also rose. TRADE TIGHTROPE Starmer's government has been seeking to build new trading relationships post-Brexit with the US, China and the EU without moving so far towards one bloc that it angers the others.
