The U.S. aerospace sector is sounding the alarm over the potential impact of proposed tariffs on imported aircraft parts, jet engines, and maintenance components, warning that such measures could jeopardize air safety and disrupt critical supply chains.
The Aerospace Industries Association (AIA), representing major companies including Boeing, Airbus, Raytheon Technologies (RTX), and GE Aerospace, has raised concerns following the U.S. Commerce Department’s initiation of a “Section 232” investigation. This investigation could lead to increased tariffs on imported aviation components, which are vital to the U.S. aerospace industry. The AIA has requested a 90-day extension for public comments and a 180-day delay on any new tariffs, urging the government to consult further with industry stakeholders to avoid compromising national security, aviation safety, and the supply chain.
The aerospace industry relies heavily on a complex global supply chain, with critical components sourced from countries such as Canada, the European Union, and Japan. For instance, a significant portion of aircraft engines and landing gear systems are manufactured abroad by companies with decades of expertise and rigorous safety certifications. Imposing tariffs on these goods would increase costs for manufacturers like Boeing and maintenance providers, who service both commercial and cargo fleets. Industry experts estimate that a 10-25% tariff on these components could increase production costs by billions annually, forcing companies to either absorb the costs or pass them on to airlines, which are already operating on thin margins.
The AIA has emphasized that the U.S. aerospace sector previously enjoyed a $75 billion annual trade surplus under the 1979 Civil Aircraft Agreement, which prohibited tariffs on civil aircraft and parts. The association is urging President Donald Trump to reinstate the tariff-free terms of the original agreement to maintain the industry’s competitiveness and ensure the continued safety and reliability of the U.S. aviation system.
In addition to the concerns raised by the AIA, recent reports indicate that China has halted deliveries of Boeing jets in response to the escalating trade tensions between the U.S. and China. While there has been no formal ban on Boeing deliveries, the imposition of tariffs is effectively blocking imports for the time being. Beijing has also asked Chinese carriers to halt purchases of aircraft-related equipment and parts from U.S. companies, further straining the supply chain.
The situation has led to increased anxiety within the aerospace industry, with experts warning that the proposed tariffs could have unintended and harmful consequences. The AIA has called for a balanced approach that considers both national security concerns and the practical realities of the global aerospace supply chain. The association is urging the U.S. government to engage in further consultations with industry stakeholders to develop policies that support the continued growth and safety of the U.S. aerospace sector.
As discussions around trade policies intensify, the aerospace industry remains on edge, closely monitoring developments and advocating for measures that will safeguard air safety and maintain the integrity of the global supply chain.
