The United States (US) is imposing a 10% customs levy on airplanes made within the European Union (EU) beginning October 18. This may greatly affect airlines in the US that have ordered Airbus aircraft worth billions in dollars. In the list of affected products subject to import duties, its says, "New airplanes and other aircraft (other than military airplanes or other military aircraft) of an unladen weight exceeding 30,000kg.”
In a report by Ch-Aviation, it says that the move came after the US was given authorization by the World Trade Organization (WTO), which has the authority globally to set rulings on trade disputes. On the other hand, the WTO is preparing to rule on what tarrifs the EU can impose due to the aid given to Boeing by the US state. The EU said that it has no choice but to retaliate itself.
Airbus Chief-Executive Guillaume Fraury said, "Airbus will continue working with its US partners, customers, and suppliers to address all potential consequences of such tariffs that would be a barrier against free trade and would have a negative impact on not only the US airlines but also US jobs, suppliers, and air travellers.”
“Airbus is therefore hopeful that the US and the EU will agree to find a negotiated solution before creating serious damage to the aviation industry as well as to trade relations and the global economy," Fraury continued.
Airbus urged for a negotiated settlement, noting that tarrifs on aircraft will bring further insecurity to airlines and to the global economy.
One of the US carriers that will be affected with the tarrifs will be Delta, which has 170 Airbus aircraft orders, as costs will increase. In a statement, the airline said, "Aircraft are significant purchases requiring long lead times for production - often years in advance. Imposing tariffs on aircraft that US companies have already committed to will inflict serious harm on US airlines, the millions of Americans they employ, and the travelling public.”
In a report, Airbus said that it has abandoned most of the subsidies denounced by the US. About only 6% of the production consisting of A350 and A380 still benefit. Airbus has earlier announced that the A380 will hault production in 2021.