Connect with us

Civil Aviation

Airbus Tells U.S. Airlines to Cover Trump Tariff Costs on Imported Aircraft

Airbus Tells U.S. Airlines to Cover Trump Tariff Costs on Imported Aircraft

In a bold move that is sure to stir up tension between Airbus and U.S. carriers, the European aerospace giant has made it clear: U.S. airlines will have to bear the burden of tariffs imposed by the Trump administration on imported aircraft.

Airbus CEO Guillaume Faury recently stated that the company will not cover the extra cost of these tariffs, setting up a potential clash with major airlines that are already reluctant to absorb these additional expenses.

Airbus Draws the Line on Tariffs

While Airbus has agreed to shoulder the cost of tariffs on parts and materials it imports to its Mobile, Alabama plant, the company has drawn a firm line when it comes to aircraft imported from Europe.

Faury clarified that when Airbus exports planes from its European factories to the U.S., the responsibility for paying any tariffs falls squarely on the shoulders of the customers. This stance is expected to complicate negotiations with several prominent U.S. airlines that are already feeling the financial strain from the tariff-driven price hikes.

Airlines Reject the Tariff Burden

Several major U.S. carriers, including Delta Air Lines and American Airlines, have already signaled that they are unwilling to absorb the additional costs of the tariffs.

Delta, in particular, has taken steps to mitigate the impact by rerouting deliveries of its Airbus A350-900s through Tokyo, a strategy that mirrors the tactics it used during a similar trade dispute in 2019.

American Airlines has also voiced its opposition, making it clear that the added expenses will not be passed on to their bottom line.

The airlines’ resistance to covering these extra charges presents a significant challenge for Airbus, which has set an ambitious goal of delivering around 820 commercial aircraft this year. However, the company has also acknowledged that this target assumes “no additional disruptions to global trade or the world economy,” including the ongoing fallout from tariffs.

Ryanair Looks Elsewhere Amid Tariff Concerns

Across the Atlantic, Ryanair CEO Michael O’Leary is already considering alternative suppliers. In a letter to shareholders, O’Leary expressed concern over the potential impact of U.S. tariffs on the Boeing planes his airline has ordered.

Should the tariffs significantly raise the cost of those planes, Ryanair will explore other options, including turning to Chinese manufacturer COMAC. This bold move underscores the broader uncertainty in the aviation industry as airlines and aircraft manufacturers continue to grapple with the fallout from the trade war.

Dawal is a skilled aviation content writer with eight years of experience in the Aerospace industry. He specializes in aerospace Engineering & Management, and website development.

Copyright © 2021-23 Jetlineintl. News is covered by Jetline International for the USA, UK, UAE, and Asia.