Aerospace Groups Call for Delay on 50% US Tariffs

US President Donald Trump’s decision to increase tariffs on imported commercial aircraft, jet engines, and related parts is raising concerns among major industry stakeholders. The tariff, effective June 4, raises rates on aluminum, steel, and their derivatives from 25% to 50%, with an exemption for goods from the United Kingdom, which remain at 25% pending a review on July 9.

According to a White House statement issued June 3, the action followed a review of national security concerns. “It is necessary to further increase the existing tariffs to prevent these imports from continuing to threaten national security,” reads the statement.

Industry representatives, including the International Air Transport Association (IATA), warn that the measure could cause severe disruption. “We are submitting comments and hope the Trump administration recognizes that this would not only disrupt international aviation, but is also shortsighted given the United States is the world’s top exporter of these products,” says Doug Lavin, Vice President for North America, IATA. 

The Aerospace Industries Association (AIA), which represents firms including Boeing, Airbus, RTX, and GE Aerospace, sent a letter to the US Commerce Department urging an extension of the Section 232 comment period by 90 days and requesting no new tariffs be imposed for at least 180 days. “No other manufacturing sector aligns more closely with President Trump’s vision of a production-based economy,” writes Dak Hardwick, Vice President for International Affairs, AIA.

The AIA says that the US aerospace sector supports over 100,000 companies and 2.2 million workers. In 2023, it generated US$545.2 billion in output and contributed US$284.1 billion to the national GDP. The group also highlights risks to the supply chain, noting that replacing disrupted suppliers could take up to 10 years due to the rigorous certification process.

Airlines for America (A4A), representing carriers such as American Airlines, United, and Delta, warns in formal comments to the Department of Commerce that the tariff hike could increase aircraft costs by over 10%, raising ticket and shipping prices. “Injecting higher costs into the commercial aviation sector will weaken our economic and national security,” writes the group.

A4A also cautions that the new tariffs could destabilize the recovering aerospace supply chain and could jeopardize air safety. "It may take up to 10 years to establish a new domestic supplier and ensure they meet necessary, rigorous safety certifications," writes the AIA.

Prior to the 50% hike, the industry had already been facing a 10% tariff on most imported aircraft and parts. Additionally, existing duties on materials from Canada, Mexico, and China are projected to raise aircraft production costs by as much as $5 billion annually, according to estimates cited in the discussion.

Trump faces pressure from both airlines and manufacturers to reestablish a tariff-free regime under the 1979 Agreement on Trade in Civil Aircraft, which has historically benefited the US sector with an annual trade surplus of US$75 billion.