Airbus Warns that Tariffs on Mexico, Canada Threaten US Output

US tariffs on aviation components imported from Mexico and Canada put aircraft production in the United States at risk, according to comments submitted by Airbus Americas to the Office of the US Trade Representative. The company said the measures could raise production and delivery costs in the United States and reduce the competitiveness of US-based assembly lines, despite Airbus’ investments in the country.

In its letter, Airbus says the warning comes as global aircraft demand continues to rise. The company forecasts demand for 43,420 new passenger and cargo aircraft worldwide over the next 20 years, beginning in 2025, a figure that underpins higher production rates across the industry.

“Airbus agrees with the Administration’s policies to further strengthen US manufacturing, which is why we are investing heavily in our US manufacturing facilities and supply chain,” says the company. “However, current US tariffs on aviation parts and components from Canada and Mexico put domestic commercial aircraft production at risk and will reduce the competitiveness of US manufacturing lines, as aircraft production and delivery costs in the United States will increase, despite Airbus’ interest in raising domestic production rates.”

Airbus says both it and Boeing are increasing production rates to meet demand, a move it said directly benefits US suppliers and employment. The company cited 1.1 million US jobs linked to the production of commercial aircraft, engines and parts.

To support higher output, Airbus says it opened a second A320 final assembly line at its Mobile, Alabama, facility in October 2025. The site now operates three lines. Airbus said the expansion positions Airbus Mobile to become the fourth-largest commercial aircraft manufacturing site globally.

“This investment will allow Airbus Mobile to become the fourth-largest commercial aircraft manufacturing site in the world,” the company says. “This growth would not be possible without tariff-free treatment for aerospace imports, as recognized by the Agreement on Trade in Civil Aircraft and reinforced by the Trump administration.”

The letter was signed by Robin Hayes, President and Chief Executive, Airbus Americas. He says Airbus is seeking exclusion from the tariffs and urged US authorities to protect integrated supply chains across North America during the review of the USMCA.

Hayes says the aerospace supply chain across the three countries has been built over decades and supports production efficiency and employment. Airbus says maintaining tariff-free trade for aerospace components is critical to sustaining output increases planned to meet long-term global demand.