U.S. aerospace and airline stakeholders warn of tariffs impact on air safety

The AIA warned on June 3 that new tariffs on imported commercial aircraft, jet engines, and parts could risk air safety and the supply chain. The industry representatives also claimed that the effects of tariffs could trigger other unintended consequences.

The Aerospace Industries Association (AIA) urged the Commerce Department in a filing to extend the public comment period on Section 232 by 90 days and impose no new tariffs for at least 180 days. The AIA represents Boeing (BA.N), Airbus (AIR.PA), RTX (RTX.N), GE Aerospace (GE.N), and hundreds of other companies. 

The Commerce Department opened a “Section 232” investigation in May, looking at risks to U.S. national security from imported goods.

According to industry groups, the investigations could be a basis for even higher tariffs on imported planes, engines, and parts. The groups also urged further consultation with other industry stakeholders on any Section 232 tariffs to ensure they accurately reflected national security concerns and did not put the supply chain and aviation safety at risk.

Aviation industry players say higher tariffs might weaken aviation security

Comments filed with the Commerce Department suggested that injecting higher costs into the commercial aviation sector would weaken U.S. economic and national security. Higher tariffs also have a material and debilitating impact on the domestic commercial aviation industry’s ability to grow, compete, innovate, and invest. 

The AIA also showed how a fire at a Pennsylvania aerospace fastener supplier in February impacted production and the difficulties in sourcing parts from new suppliers. The group added that it may take up to 10 years to establish a new domestic supplier and ensure they meet the necessary, rigorous safety certifications.

The U.S. aviation industry officials held a meeting with senior members of the Trump administration, including the President, asking them to restore the tariff-free regime under the 1979 Civil Aircraft Agreement.

The sector enjoyed a $75 billion annual trade surplus under the agreement before Trump’s tariffs ended its decades-old duty-free status. The U.S. aerospace sector relies heavily on imported components, including engines, avionics, and specialized materials, many of which are sourced from countries such as Canada, the European Union, and Japan.

“Our industry is collaborative by design; we have developed reciprocal trading relationships with trusted partners to meet market demand, ensure mutual safety certification, and establish secure supply chains.”

–AIA

However, Airlines for America also warned that tariffs could hike plane tickets and shipping rates, dismantle the recovering aviation supply chain, result in more counterfeit parts entering the market, and cause many challenges and unintended consequences. The trade group represents American Airlines, United Airlines, Delta Air Lines, and other major carriers.

AIA pushes for trade policies focused on the domestic industry 

The AIA and its members signalled eagerness to work with the U.S. government to develop trade policies that supported the domestic industry and reflected its strong manufacturing capabilities. The group supported the Trump administration, pursuing trade agreements that secured market and supplier access.

For instance, the U.S.-Mexico-Canada Agreement (USMCA) has been crucial for the U.S. aviation industry in providing access to critical mineral and raw material sources that are not domestically available and strengthening the North American supply chain, thereby reducing “adversarial dependencies.”

The AIA also pointed out that the U.S. aviation industry is collaborative by design. The aerospace stakeholders had developed reciprocal trading relationships with trusted partners to meet market demand, ensure mutual safety certification, and establish secure supply chains.

AIA members recommended that the U.S. government advocate for reciprocal trade of aerospace parts and components between the United States and committed, like-minded trading partners. 

The Trump administration recently outlined key efforts to create an open investment environment through the America First Investment Policy. These efforts can be further supported by streamlining foreign investment through the Committee on Foreign Investment in the United States and facilitating constructive agreements with trading partners that uphold IP protection and support regulatory compliance. 

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