The aerospace industry appears to have escaped another tariff pitfall, with the administration of US President Donald Trump saying on 20 February that a new pending tariff will not apply to aircraft.
Earlier on 20 February, the US Supreme Court struck down many of the president’s prior-imposed tariffs. The court said the US International Emergency Economic Powers Act – the law Trump invoked to impose his earlier tariffs – does not grant him such authority.
Trump immediately responded on 20 February by saying his administration will impose a new 10% tariff against all other nations, with exceptions, in the coming days. Trump claims another legal provision – section 122 of the US Trade Act of 1974 – grants him that authority.
Trump has since posted to his Truth Social account that tariffs will actually be 15%, not 10%. Section 122 allows a president to issue tariffs up to 15% for up to 150 days to address “international payment problems”.
Luckily for the aerospace industry, the administration says many aerospace products will be exempt from the new 15% duties. Such products had also been exempt from Trump’s prior tariffs.
Specifically, the new 15% levy will not apply to Canadian and Mexican imports compliant with the United States-Mexico-Canada Agreement (USMCA). Civil aircraft and their engines and components, including subassemblies, and flight simulators, are compliant.
White House documents also say the 15% tariff against other nations will not apply to “certain aerospace products”.
Trump intends to impose additional tariffs based on other legal authorities in “the next short number of months”, he posted to his social media account.
Those other legal authorities likely require a greater degree of evaluation prior to implementation.
