Leeham News and Analysis
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US Transpo Secretary supports zero tariffs on aerospace, but change isn’t assured
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By Scott Hamilton
July 7, 2025, © Leeham News: US Transportation Secretary Sean Duffy wants to return to aerospace’s zero-tariff agreement, dating to 1979, but cautioned that doing so requires a larger trade agreement between party governments.
Currently, the US has a minimum 10% to 25% tariff on aerospace imports from the European Union and Canada, with much higher fees in some cases. The EU is prepared to impose reciprocal tariffs on the US.
Tariffs have major implications for Airbus and Boeing. Although Airbus assembles A220s and A320/321s at its US Mobile (AL) plant, fuselages, wings and other components are imported into the US from Canada (A220s) and the EU (A320/321s).
Boeing exports planes to the EU, which includes 28 countries. Boeing has more exposure than Airbus.
Components imported by Airbus or Boeing for inclusion in the airplanes are also subject to tariffs.
A Boeing spokesperson told LNA that it can recapture tariffs on important components that are on aircraft subsequently exported. But this ignores the overarching tariffs the EU may apply to the completed airplane.
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Christian Scherer, CEO of Airbus Commercial. Credit: Airbus.
In advance of the Paris Air Show, Airbus said that it’s going to adjust to US-imposed tariffs.
Responding to a question if it “made sense” for the Mobile plant to assemble A220s and A320/321s at the present rate given the impact of the tax, Christian Scherer said there will be no change. Airbus will live with the situation as it evolves. Scherer is the CEO of Airbus’s commercial operations.
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