The Trump administration has launched an investigation into the import of commercial aircraft, jet engines and related parts.
According to a federal notice posted online Friday, Commerce Secretary Howard Lutnick began an investigation on May 1 under the provisions of the Trade Expansion Act. This allows the president to impose tariffs on foreign products for national security.
President Trump has already used his authority to impose tariffs on aluminum and steel and launch similar investigations, including the last month, including semiconductors and medicines.
As part of the new investigation, the Commerce Department said industrial input of demand for aircraft, engines and parts and that it could be met domestically. The role played by foreign suppliers in the market. To the extent that foreign governments support those businesses. Other issues.
Tariffs on imports can hurt the aerospace industry, which has produced one of the biggest trade surpluses of any industry over the years, but they rely heavily on specialized suppliers spread around the world. In some cases, critical parts may be manufactured by a small number of manufacturers or only one manufacturer. According to Ibisworld, the aerospace industry is expected to export approximately $125 billion this year.
“Our record of trade surplus, job creation, and innovative contributions to both air transport and defense is the best news story for the American economy of all manufacturing sectors,” said Eric Fanning, chairman of the Aerospace Industry Association, in a statement. “We look forward to working with the Department of Commerce to identify opportunities to strengthen our domestic supply chains while maintaining a trade framework that enabled global leadership in aerospace.”
Boeing, which makes the commercial plane, recently described the direct impact of the tariffs Trump has imposed on minors, but said he is concerned about the tolls that will be applied to suppliers. The company's chief executive, Kelly Autoberg, told a Wall Street analyst last month that Boeing is paying 10% tariffs on the components of widebody jets imported from Japan and Italy, but hopes to recover those costs when the plane is sold.
RTX, which manufactures the engines and parts of the plane, is estimated to cost this year's tariffs of $850 million last month. Another engine manufacturer, Ge Aerospace, said it expects a tariff cost of $500 million this year.
The government often sought to protect and nurture the aviation industry with tariffs and subsidies. The US and the European Union have long argued over whether others are offering unfair subsidies to Boeing and Airbus, the world's largest manufacturers of commercial aircraft. Airbus is based in France and has extensive activities in several European countries.
