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

Reuters

Five countries, the European Union, and global airlines have urged the Trump administration to avoid imposing new national security tariffs on imported commercial planes and parts, citing potential damage to trade and aviation industries, according to documents released on Tuesday.

Airlines and plane manufacturers have lobbied President Donald Trump to restore the tariff-free regime under the 1979 Civil Aircraft Agreement, which has resulted in a $75 billion annual trade surplus for the U.S. aerospace industry.

In a separate filing, U.S. planemaker Boeing pointed to a recent trade agreement with the UK, which ensures tariff-free treatment for aircraft and parts. Boeing argued that the U.S. should secure similar duty-free terms in any future trade agreements, as it did with Britain.

The documents also revealed concerns from nations such as Canada, China, Japan, Mexico, and Switzerland, as well as the European Union, over the potential consequences of new tariffs. Mexico, for example, exported $1.45 billion in aircraft parts to the U.S. in 2024, a small portion of the total trade. The EU reported U.S. aircraft exports worth around $12 billion, while exporting about $8 billion in aircraft to the U.S.

In May, the U.S. Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines, and parts, which could lead to higher tariffs.

China criticized the potential tariffs, stating that no country or region should support the growth of its domestic aircraft industry by suppressing foreign competitors. The EU also expressed concerns, urging the U.S. to strengthen its trade in aircraft and parts, rather than imposing trade restrictions.

Trump has already imposed a 10% tariff on nearly all aircraft and parts imports.

Delta Air Lines and major trade groups have warned that these tariffs could increase ticket prices, impact aviation safety, and disrupt supply chains.

Airbus Americas CEO Robin Hayes also expressed concerns, stating that it is neither realistic nor sensible to aim for a completely domestic supply chain in any country.

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