Tariffs on Aircraft Parts: US Brewing a Storm in Aviation Sector?
U.S. aircraft tariffs celebrated by trade minister as economic advantage
In the ever-evolving world of trade policies, the US seems to be stirring up turbulence once again. latest reports suggest that the government could be geared towards imposing tariffs on aircraft parts, turning aviation into a battlefield in the trade war.
According to statements made by US Trade Minister Howard Lutnick during a Senate hearing in Washington, a new "standard for tariffs on aircraft parts" could be set by the end of June. President Donald Trump's goal? To protect the domestic industry and ensure fair treatment in trade.
The aviation sector has managed to dodge tariffs worldwide for decades, but the US' move could draw it into the tariff conflict initiated by the US President in April, when he imposed higher import duties on trading partners globally.
The threat of tariffs has already been met with a list of potential EU counter-tariffs, targeting aircraft as well. The CEO of European aircraft manufacturer Airbus, Guillaume Faury, has called for retaliatory tariffs on US-manufactured machines, such as Boeing.
Before Lutnick's statements, Trump further escalated the trade conflict by doubling US import tariffs for steel and aluminum from the EU to 50 percent. These tariffs are among the topics during German Chancellor Friedrich Merz's inaugural visit to Washington on Thursday.
However, it's good to note that as of now, no specific tariffs on aircraft parts have been announced by the US administration. But, an ongoing investigation by the Commerce Department on May 1, 2025, is examining the national security implications of importing commercial aircraft, jet engines, and their parts [2][3][4]. If the investigation concludes in favor of tariffs, it could significantly impact the trade relations between the US and the EU, particularly the Boeing and Airbus manufacturers.
- Boeing and Airbus: Boeing could be facing significant risks, given its dependence on international supply chains. Airbus, on the other hand, might be somewhat insulated due to its U.S. manufacturing facilities and diversified supply chains. However, Airbus produces its wide-body aircraft in the EU, which might be subject to tariffs if imposed [1].
- Recent Trade Developments: Despite the tariff uncertainties, there have been developments that suggest ongoing trade dynamics. The UK-US trade deal, for example, exempts Rolls-Royce engines from US tariffs, supporting Boeing aircraft models that incorporate these engines. Additionally, the UK has also made a significant purchase of Boeing aircraft, which demonstrates the trade dynamics that persist despite the tariff uncertainties [1].
Only time will tell whether the US will follow through with its threat to impose tariffs on aircraft parts. Until then, the aviation sector and its manufacturers will undoubtedly remain on edge.
Sources: ntv.de, mpa/AFP
Related terms: #Aircraft manufacturing, #Aircraft, #Boeing, #Airbus Group, #Donald Trump, #WTO, #Tariffs, #Trade conflicts, #Trade relations
- The ongoing investigation by the Commerce Department could shape a new employment policy within the aviation sector, potentially affecting both Boeing and Airbus, given the national security implications of importing aircraft parts.
- The business and finance sectors might witness significant changes due to the political ramifications of the tariffs on aircraft parts, with potential effects on employment policies in the aviation industry.
