The European Union is preparing to strike back in the escalating trade tensions with the United States, this time targeting Boeing jets. This move comes in response to Washington’s 10% tariffs on European goods, including Airbus aircraft, reigniting a long-standing dispute between the world’s two largest aerospace markets.
If implemented, this would be the first time since 2021 that both sides have introduced import taxes specifically affecting the civil aviation sector, which is valued at around $150 billion globally. The European Commission is expected to reveal the details of its planned counter-measures shortly, in case talks with the U.S. do not lead to a resolution.
This potential retaliation could significantly disrupt the aerospace industry, as European airlines have placed large orders for Boeing jets. The introduction of fresh tariffs would likely increase aircraft costs and strain the financial models of carriers banking on consistent pricing amid a recovering market.
The EU already faces steep U.S. tariffs on other major exports such as steel, aluminum, and automobiles. Now, with the 90-day pause on tariff escalation expiring on July 8, European authorities are under pressure to respond strategically to avoid further economic disadvantages.
According to Reuters, civil aircraft are expected to be included in a list of U.S. imports worth around $100 billion that the EU may target with new tariffs. Industry sources cited by the outlet indicate that this is aimed at leveling the playing field between Airbus and Boeing, and is supported by a unified call from aerospace manufacturers to eliminate all trade barriers.
Airbus CEO Guillaume Faury recently emphasized the importance of returning to a tariff-free environment, urging global leaders to honor previous international agreements that spared aircraft from duties. Boeing has echoed similar sentiments, with CEO Kelly Ortberg affirming support for free trade during a recent Congressional hearing.
What’s your take on this brewing tariff war? Should aerospace companies push harder for a truce? Drop your thoughts in the comments.
Meanwhile, Ryanair, one of Boeing’s largest customers in Europe, has threatened to cancel hundreds of orders if the trade dispute materially increases aircraft prices. However, with Airbus fully booked for the rest of the decade and aerospace contracts offering little room for cancellation, airlines may find it difficult to act on such threats.
Delta Air Lines, on the other hand, has indicated it would consider deferring deliveries of Airbus planes if the situation continues. The evolving standoff has raised alarms across the aviation industry, which fears long-term damage if no resolution is reached soon.
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Disclaimer: This article is based on publicly available information from credible news sources. EnrichPR does not claim any ownership of the original reporting and does not add speculative content. Readers are advised to consult the original sources for further details or updates.
