US ends probe into imported airplanes, parts without seeking new tariffs
Under intense lobbying from the U.S. aviation industry, the Trump administration agreed to exempt planes and parts from duties as part of trade deals after briefly imposing tariffs on aviation last year. The report, resulting from an investigation opened last year, found that the U.S. aircraft industry is “overly reliant on foreign supply chains, raising national security concerns” and noted risks from imported aircraft parts due to quality control and counterfeiting.
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However, the White House said that US Commerce Secretary Howard Lutnick recommended not imposing immediate tariffs.
President Donald Trump has steered negotiations with trade partners to address the impact of foreign imports on the health of the U.S. commercial aviation industry and said he could take action without a deal within six months.
“Competitive pressure from low-cost foreign suppliers is also forcing U.S. firms to keep wages steady or limit hiring, making aircraft manufacturing jobs less attractive compared to other industries,” the report said.
Airplanes and parts benefited from a duty-free regime under the 1979 Civil Aircraft Agreement, under which the US industry had an annual trade surplus of $75 billion.Also read: Boeing’s new 737 assembly line begins moving in Everett
Trump has made Boeing plane sales a key component of trade deals and often boasts about how many planes he has helped sell to foreign countries.
Delta Air Lines and major trade groups warned last year about the impact of airfares on ticket prices, aviation security and supply chains.
Airbus Americas also warned last year that tariffs would put US aircraft production at risk.
