The decision by the US Trade Representative (USTR) to increase the tariff on airplanes imported from the EU from 10 – 15%, as part of a 15-year-long dispute over subsidies, was slammed by European airframe maker Airbus in a statement.
On Friday USTR announced that it would be making the increase, along with other minor alterations in the ongoing trade dispute between the US and EU, effective from March 18, 2020. Airbus responded with a statement that the move would create instability and increase costs for the end users and negatively impact the US airline industry itself.
“Airbus deeply regrets USTR’s decision to increase tariffs on aircraft imported from the EU as well as the decision to maintain tariffs on goods from other sectors. USTR’s decision to impose tariffs further escalates trade tensions between the US and the EU
Airbus has and will continue to push for a negotiated settlement to this 15-year-long dispute. USTR’s further escalation complicates efforts to find a negotiated outcome to this dispute. This is regrettable.”
The European airframe maker did not explicitly reference the grounding of Boeing’s 737 MAX planes in 2019 in its statement but pointed that an increase in tariffs on Airbus planes would have a negative effect on US carriers also.
“[The tariffs] thereby creat[e] more instability for US airlines that are already suffering from a shortage of aircraft. USTR’s decision ignores the many submissions made by US airlines, highlighting the fact that they – and the US flying public – will ultimately have to pay these tariffs.”
Airbus said it will continue its discussions with its US customers and work with them to mitigate effects of tariffs but did not elaborate on what form this could take.
In its Friday statement the USTR explicitly referenced the decision to increase tariffs was backed by a successful appeal to the WTO and that it reserved the right to further increase the figure to 25%, however Airbus pointedly referred to fact that the world trade body’s decision could also authorise EU actions on US OEMs.
“Airbus hopes that USTR’s position will change, especially when the WTO will authorize the EU to impose tariffs on Boeing aircraft, including the 737Max, 787 and 777 aircraft in the May/June timeframe.
Airbus slams US tariff increase on EU aircraft
