European Aerospace Firms Call For Action Against US Tariffs

5th Apr 2025
European Aerospace Firms Call For Action Against US Tariffs

On 3 March 2025, some European aerospace firms led by Airbus urged the EU to firmly fight back the tariffs from US President, Donald Trump. These recently announced tariffs will bite into the profit and overall business of various aerospace firms operating out of Europe.

European Aerospace Firms Take A Stand Against Donald Trump’s Reciprocal Tariffs

On 2 March 2025, Donald Trump the president of the US announced the kick-off of tariffs that affect the majority of the world. The EU isn’t spared from these charges, as the US hits it with a 20% tariff on goods and services that the EU provides.

These tariffs will affect business between the EU and the US on various industrial levels. One industry that will feel the effect of these tariffs is the aerospace industry, as they actively partner with the US on the importation of parts.

Following the announcement of these tariffs, some European aerospace firms turned to the EU for action. Leading these firms was Airbus, one of the top aeroplane manufacturing firms in the world.

Being a European firm, Airbus will also feel the effect of these tariffs on its business with the US. The tariffs might push most US firms hoping to conduct business with Airbus to one of its major rivals, Boeing.

France, the home country of Airbus, is calling on the European Commission to demand “proportionate and assertive” countermeasures against these tariffs. Other European aerospace firms are backing this move as they warn against an increase in flight fares to and from the US.

Rolls-Royce, makers of jet engines, are also feeling the effects of these tariffs as the US put a 10% tariff on British businesses. This means that the cost of assembling an aeroplane in the US using a Rolls Royce-sourced engine will see significant inflation.

How Might The EU Respond To The US Tariffs?

From reports we can tell that the EU isn’t in support of the US tariffs as they will hurt various local businesses. The EU is now preparing to talk with the US government regarding these tariffs with hopes of possibly removing or reducing them.

If these talks don’t go in the favour of Europe, the EU is threatening to take countermeasures against the US. However, there is a need to carefully consider these countermeasures as they might not be in favour of local European firms benefiting from US imports.

European association, GIFAS, advises that these countermeasures undergo some fine-tuning to prevent them from hurting European businesses. While the effects of these tariffs are already being felt by some European firms the EU’s response is still being awaited.

Possibly the EU will place similar tariffs on the US demanding extra pay for goods they import into the region. This might be the EU’s last resort if the US doesn’t give in to their demand to remove or reduce the tariffs.

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