Tuesday, 02 January 2024 12:17 GMT

Trump Urged To Drop Aircraft Tariff Plans


(MENAFN- Bangladesh Monitor)

Dhaka: A coalition of global powers-including China, Canada, Japan, Mexico, Switzerland, and the European Union-has called on the Trump administration to reconsider proposed U.S. tariffs on imported commercial airplanes, engines, and components.

The appeal was made through formal letters to the U.S. Commerce Department, which is conducting a Section 232 national security investigation into the aviation sector.

Industry leaders and foreign governments warn that the proposed tariffs could severely disrupt global supply chains, increase costs for airlines and passengers, and strain international cooperation in one of the world's most interconnected industries.

Modern aircraft are assembled from components sourced across the globe: engines from the UK, avionics from Japan, wings from Italy, and seats from Canada-all brought together in the United States.

Stakeholders argue that imposing tariffs would jeopardize this complex international system, harming both domestic and global aviation markets.

The EU emphasized the strategic importance of tariff-free trade, stating:“As reliable trading partners, the European Union and United States should strengthen their trade regarding aircraft and aircraft parts, rather than hinder it by imposing trade restrictions.”

China warned against protectionist policies saying that“No country or region should attempt to support the development of its domestic aircraft manufacturing industry by suppressing foreign competitors”.

Airline groups including Delta, JetBlue, and Airbus Americas echoed concerns that new tariffs would inflate ticket costs, disrupt supply chains, compromise safety, and jeopardize U.S. aerospace employment.“Trade policy should reinforce, not destabilize, the proven systems that keep our aircraft flying safely and affordably,” JetBlue stated.

Some industry experts argue that maintaining tariff-free access is crucial to sustaining U.S. leadership in the aviation industry, preserving global supply chains, and protecting consumers.

The Airlines for America (A4A) trade group expressed concern that the tariffs will hurt US manufacturers rather than benefit them, emphasizing the importance of open, tariff-free trade in maintaining U.S. competitiveness and keeping aviation costs manageable.

The Aerospace Industries Association (AIA) commented that“Imposing broad tariff or non-tariff trade barriers on the imports of civil aviation technology would risk reversing decades of industrial progress and harm the domestic supply chain.”

-B

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Bangladesh Monitor

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