Politicians Advised to Request Tariff Waivers for Aircraft and Aviation Engines
Aerospace Industry Pleading for US Tariff Exemptions
The UK's aerospace sector is in a bind, urged by ministers to seek an exemption from the US's hefty tariffs on civil aircraft and engine parts. This move comes as the industry grapples with the repercussions of these tariffs amid an already strained supply chain.
The Association of Defense and Aerospace Companies (ADS), which represents the UK's aerospace supply chain, paints a grim picture if the disruption to this pressured supply chain continues. It could potentially derail aircraft deliveries in the foreseeable future.
The crossfire between manufacturers and airline customers is intense, with both camps squabbling over who should bear the extra cost resulted from the tariffs. Last week, Airbus announced it wouldn't cover the cost on its planes imported by US airlines. On the other hand, Ryanair, Europe's largest airline and Boeing's most significant buyer, hinted at potential delays in US supplier deliveries if they become excessively pricey.
Industry insiders point out that these tariffs aren't just a hassle—they represent a significant shift for an industry that enjoyed free trade for nearly four decades.
ADS cautioned that broader international responses to the US's erratic trade policy could exacerbate the situation, particularly for long-haul programs and cross-border component flows. To prevent this, ADS is calling on the UK Government to champion exemptions for civil aircraft, engine parts, and components in their trade negotiations with the US. This push aims to maintain the free movement of aerospace goods in accordance with the WTO Agreement on Trade in Civil Aircraft.
The aerospace industry has seen a resurgence lately, with a 73% year-on-year increase in aircraft orders in Q1 2025. This impressive growth indicates the sector's global significance. However, the US tariffs have added an uncertain layer that could trigger supply chain issues and delivery delays, prompting ADS to lobby for government intervention.
A government spokesperson has confirmed that talks on an economic deal between the US and the UK are underway. Though they avoided providing a running commentary on the fine details, they made it clear that a trade war isn't beneficial and they'll continue pursuing a diplomatic resolution to help alleviate pressure on UK businesses and consumers.
[1] The financial toll of the US-imposed tariffs, manufacturing vs. airlines cost burden dispute, and ADS's role in advocating for tariff exemptions in the UK-US trade negotiations.[5] The performance of the aerospace sector, global market significance, and ADS's efforts to alleviate US tariff-related uncertainties.
[1] Citing the financial impact, airlines and manufacturers are locked in a dispute about who should shoulder the costs resulting from the US tariffs on civil aircraft.[2] The Association of Defense and Aerospace Companies (ADS) is advocating for exemptions from these tariffs in the UK-US trade negotiations, warning of potential disruption to aircraft deliveries.[3] According to industry insiders, these tariffs not only pose a problem but also signal a significant shift for an industry that has benefited from free trade for nearly four decades.[4] ADS has cautioned that the broader international response to the US's erratic trade policy could exacerbate the situation, particularly for long-haul programs and cross-border component flows.[5] Despite the unsettling layer of uncertainty added by the US tariffs, the aerospace sector is experiencing impressive growth, with a 73% year-on-year increase in aircraft orders in Q1 2025.
