Subscription Required

By Scott Hamilton

April 10, 2025, © Leeham News, Seattle: The airline and aerospace industries are plagued by uncertainty over the global tariffs announced by US President Donald Trump on April 2. The 90-day pause on nearly all tariffs announced yesterday doesn't resolve the uncertainties. For the moment, they are only postponed.

Airbus's A320 production plant in Hamburg, Germany. Credit: Leeham News.

Airframe and engine manufacturers, suppliers of components feeding them, and Buyer Furnished Equipment (BFE) directly to the airlines, lessors, aftermarket maintenance companies, and freighter conversion firms have many questions and no answers in chaos following Trump’s global tariff scheme.

Related Stories

• Boeing eyes tariff risks
• Boeing at far greater risk of tariffs than Airbus

Consider the unknowns:

1. Will Trump tax the entire value of airplanes, engines, and components imported into the United States or just the foreign content? There is no guidance yet.
2. Will other jurisdictions, notably the European Union, announce reciprocal tariffs? This is unknown because the Trump Administration hasn’t clarified what will be taxed.
3. How will aircraft leased by non-US lessors be treated when US airlines are the customers? How will US lessors leasing to non-US airlines be treated? No answers.
4. Contracts between lessors, airlines, Boeing, and Airbus don’t specifically address tariffs. Some airlines say they won’t pay tariffs because the contracts are silent. However, Boeing thinks there is a way to pass tariffs along. Airbus probably does, too.
5. Over the last weekend, US-based supplier Howmet informed its customers it reserves the right to exercise the force majeure clause in its contracts to give it flexibility to suspend deliveries because of the tariffs. Other suppliers, including some engine companies, are following suit.
6. At least one supplier has already billed some customers for delivered goods, including a tariff tax line item on the invoice.
7. How will various jurisdictions treat aircraft converted into freighters with a mix of US and foreign content? There is no answer.

The US-based law firm Vedder Price issued its opinion and guidance on Tuesday on some issues.