The Trump administration is increasing the additional duty rate imposed on aircraft imported from the EU to 15% from 10%, effective March 18, 2020
The United States has announced that the duty rate imposed on Airbus planes imported from Europe will be raised by 5% from March 18. The rate of these duties has been 10% since October 2019 after the WTO (World Trade Organization) estimated that Airbus had benefited from undue subsidies amounting to $7.5 billion. Airbus planes assembled in Mobile, Alabama, USA, escape these customs taxes. For Airbus, “USTR’s decision to impose tariffs further escalates trade tensions between the US and the EU” thereby “creating more instability for US airlines that are already suffering from a shortage of aircraft”. USTR’s decision “ignores the many submissions made by US airlines, highlighting the fact that they – and the US flying public – will ultimately have to pay these tariffs”, stressed Airbus. Besides, this decision could consequently lead to delays in deliveries on the wide-body aircraft A350 and A330neo since the Mobile site in the United States only assembles the medium-haul of the Airbus A320neo family, while awaiting the assembly line for the A220s.
The WTO will also have to decide, within the May / June deadline, whether to authorize the EU to impose tariffs on Boeing aircraft for the undue subsidies which the US company has also benefited from.