US increases tariffs on European aircraft

Airbus A330-900neo and A350-1000. Photo: © Airbus

The United States Trade Representative (USTR) is increasing duties on large aircraft imported from the European Union (EU) to 15 percent.

This decision will come into effect on March 18, 2020. Since October 2019, the tariffs were set at 10 percent.

Reason for this increase is an ongoing dispute over state subsidies for the European aircraft manufacturer Airbus. In October, the World Trade Organization (WTO) had permitted the USTR to impose tariffs on US $7.5 billion worth of good from European countries.

Airbus aircraft that are manufactured at its site in Mobile, Alabama, appear to be exempt from these duties, as tariffs only apply to products imported from the EU.

However, the manufacturer still ‘deeply regrets’ this move by the USTR in a statement.

USTR’s decision to impose tariffs further escalates trade tensions between the US and the EU, thereby creating more instability for US airlines that are already suffering from a shortage of aircraft.Airbus

The company continues to say that is in discussions with customer airlines to minimize effects. It is also calling for a ‘negotiated settlement’ over the dispute.