Even China is now urging the US government not to impose new tariffs on aerospace products.
The country’s government, along with many US and global aviation firms, in recent weeks raised alarm with the US Department of Commerce, warning that new aerospace-specific import taxes or other trade barriers would negatively disrupt a global industry.
“China calls on the US to put aside unilateral trade protectionism and jointly promote the recovery and prosperity of the global aviation industry,” the Government of the People’s Republic of China said in a May letter to the Commerce Department. “The global civil aircraft industry is in a state of deep cooperation and the commercial aircraft supply chain of the United States does not face security issues.”
The concern stems from the Commerce Department revealing in May an investigation into whether imported commercial aircraft and aircraft engines, and parts for those products, threaten US national security.
The agency launched its review under a 1962 law that has been used as the legal basis for many prior tariffs, including the aluminium tariff Trump imposed this year. “Section 232” of the law enables US presidents to “adjust” imports deemed “to threaten to impair the national security”. As part of its investigation, the Commerce Department solicited public feedback.
“Additional trade restrictions in the commercial aviation sector risks disrupting strategic supply chains that have been thoroughly vetted for safety and quality, with potential impacts to production volume and product costs,” says a comment from GE Aerospace.
Delta Air Lines says duties would “impose an unexpected tax on Delta’s purchases of aircraft contracted years in advance”, leaving it at “a competitive disadvantage to foreign competitors”.
“It would not be possible for Delta to replace the Airbus aircraft it has had on order for many years, because… Boeing does not have aircraft to offer anytime soon,” Delta adds.
Trump’s 2024 tariffs have already affected the aerospace sector. His 50% aluminium tariff inflates the cost of aerospace-grade aluminium, and other tariffs hits jets made by Embraer in Brazil and by Airbus in Europe.
But Trump has so far exempted Canadian-made jets, benefiting companies like Bombardier and also Airbus, which makes A220s in Mirabel. Airbus also has cover thanks to its A220 and A320neo assembly site in Alabama.
As a result, by most accounts the US tariffs have so far been more nuisance than widely disruptive, at least to Western firms. The largest US aerospace companies have estimated that the taxes will only minimally impact their finances.
Still, the Commerce Department’s newly launched investigation has stoked fresh concern.
“If the administration were to impose additional tariffs or other restrictions on Gulfstream’s imported engines and parts, it would present a significant competitive challenge for Gulfstream’s new aircraft sales and its significant maintenance business,” the US business jet maker tells the agency.
Boeing tells the Commerce Department that the aerospace industry’s success depends on being “free from artificial barriers”.
While US suppliers provide 88% of content on the in-certification 737 Max 10 and 777-9, Boeing says it “must also rely on producers in Japan and France to obtain sufficient quantities of aerospace-grade carbon fibre, as the US capacity is insufficient to meet Boeing’s demand”.
“There are often no viable alternative suppliers that can quickly meet the required certification standards,” Boeing adds.
Regional jet manufacturer Embraer tells the Commerce Department that the USA has “never produced regional aircraft” and that Embraer’s jets “obviously do not threaten to impair US national security”.
China is in a tough spot because its civilian aerospace sector depends on US aerospace components. Notably, Leap-1C turbofans produced by GE-Safran joint venture CFM International power Comac’s C919, while GE CF34s power C909s.
Reports surfaced in May that the Commerce Department had halted sales of US engines to China amid trade stress. The agency did not respond to a request for comment the issue.
But China is eager for the USA not to go further.
“No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors and implementing trade protection, which will have a negative impact on the development of the global civil aviation industry,” China’s government says in its letter to the Commerce Department.
