We start investigating the aircraft and imported parts
The Trump administration has started investigating the import of commercial aircraft, jet engines and relevant parts that could lead to a new tariff, in addition to many of them.
according to A federal notice has been published online On Friday, the Minister of Commerce, Howard Lottenic, began an investigation on May 1 under the Trade expansion law, which allows the president to impose a tariff on foreign products in favor of national security.
President Trump has already used this authority to impose a customs tariff on aluminum and steel, and to start similar investigations, including one last month in semiconductor and pharmaceutical preparations.
As part of the new investigation, the Ministry of Commerce said, it will seek to obtain the inputs of the industry upon demand for aircraft, engines and parts and whether this can be achieved locally; The role that foreign suppliers play in the market; To what extent do foreign governments prefer those companies; And other issues.
Customs tariffs on imports can harm the aviation industry, which has been produced One of the largest commercial surpluses From any industry for years, but it relies heavily on specialized suppliers who are spread all over the world. In some cases, the decisive parts can be produced by a few manufacturers or only one. The aviation industry is expected to make about $ 125 billion this year, According to IBISWORLDOnly second to oil and gas.
Eric Vanning, president of the Air Industries Association, said in a statement: “We record in commercial surpluses, creating jobs and innovative contributions to both air transport and national defense is the best news story for the American economy among all sectors of manufacturing,” Eric Vanning, President of the Air Industries Association, said in a statement. “We look forward to engaging with the Ministry of Commerce to determine the chances of strengthening our local supply chain, while also maintaining the trade framework that enabled our global leadership in the field of space.”
Boeing, which manufactures commercial aircraft, has described the direct effects of the definitions imposed by Mr. Trump in a small amount, but he said it was concerned about the losses that could have its suppliers. The CEO of the company, Kelly Ordrag, told Wall Street Habitions last month that Boeing was paying 10 percent on the ingredients of wide aircraft imported from Japan and Italy, but the company expected to recover these costs when selling aircraft.
The RTX, which makes the plane engines and spare parts last month, estimates this year the tariff this year will cost 850 million dollars. GE Aerospace, another engine maker, said she expects $ 500 million of customs tariff costs this year.
Governments have often tried to protect and care for their aviation industries with tariffs and subsidies. The United States and the European Union for many years quarreled whether the other provides unfair subsidies to Boeing Websbus, the world’s largest commercial aircraft maker. Airbus is located in France and has wide operations in many European countries.