U.S. ends aircraft import probe without new tariffs

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U.S. ends aircraft import probe

Highlights

The U.S. Commerce Department ends its investigation into imported commercial aircraft and parts without recommending immediate tariffs, citing national security concerns but opting for negotiations.
President Donald Trump sets a six-month deadline for talks aimed at reducing foreign import impact on U.S. aerospace, retaining the option to impose tariffs if no agreement is reached.
The U.S. aerospace industry maintains a $75 billion annual trade surplus under the tariff-free Civil Aircraft Agreement, with industry lobbying averting new aircraft and parts tariffs.

Commerce review findings and next steps

As reported by Reuters, the U.S. Commerce Department said on Thursday it had completed its investigation into imported commercial aircraft, jet engines and parts, concluding that foreign goods raise U.S. national security concerns. The report says the U.S. aircraft industry is too reliant on foreign supply chains and points to risks tied to imported parts, including quality control issues and counterfeiting.

But U.S. Commerce Secretary Howard Lutnick recommends that no immediate tariffs be imposed, according to the White House. President Donald Trump instead directs negotiations with trading partners to address the effect of foreign imports on the health of the U.S. commercial aerospace industry, and says he could still take action if no agreements are reached within six months.

The report also says competitive pressure from lower-cost foreign suppliers forces U.S. firms to keep wages stagnant or limit hiring, making aircraft manufacturing jobs less attractive than work in other industries.

Aerospace trade stakes for U.S. industry

Airplanes and parts have operated under a tariff-free regime since the 1979 Civil Aircraft Agreement, a framework under which the U.S. aerospace sector enjoys a $75 billion annual trade surplus. Under heavy lobbying from the U.S. aviation sector, the Trump administration agrees to exempt airplanes and parts from tariffs in trade deals after briefly imposing aviation tariffs last year.

Trump makes Boeing aircraft sales a central part of trade negotiations and often highlights the number of planes sold to foreign countries with his support. Delta Air Lines and major trade groups warn last year that airplane tariffs would raise ticket prices and disrupt aviation safety and supply chains, while Airbus Americas says such duties would put U.S. planemaking at risk.

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