The largest airline and satellite air industries in the United States warned that the customs duties that the administration of US President Donald Trump intends to impose may harm a trade surplus that the sector has maintained for more than seven decades, according to the “French Press Agency”.
The US Department of Commerce had opened an investigation in early May, at the request of Trump, to determine whether it was appropriate to impose customs duties ranging from 10 and 20 percent on civilian aircraft and their spare parts, including engines.
But the sector that put these fees to protect, was quick to assure the administration that it was not interested in protection.
In a letter addressed to the Minister of Commerce, Howard Lottenic, the American Air and Space Industries Association warned that “imposing large -scale customs barriers on civil aviation technology imports involves the risk of canceling contracts of progress and damaging local supply chains.”
The concerned authorities have been awarded a deadline until the third of June to express their positions, while Lootnick later announced that the ministry is seeking to determine the standard of customs duties imposed on the components of aircraft before the end of this month, saying that the goal is to “protect the sector and improve its performance.”
Nevertheless, the AIA and Airlines Four America (A4A) have expressed concern that the fees may eventually harm American manufacturers.
Trade surplus
In this context, AIA stressed that the civil aviation sector, in contrast to other sectors, gives priority to local production for high value and final assembly, noting that the exports of the American air and defense industries sectors amounted to 135.9 billion dollars in 2023, of which only 113.9 billion dollars of civil aviation only.
This allowed a trade surplus of $ 74.5 billion, and an investment of 34.5 billion dollars in research and development.
It also indicated that the sector employs more than 2.2 million people in more than 100,000 companies within the United States, and its value is produced about $ 545 billion of commodities annually.
In her response to Lottennik, Irlines Four America focused on the role of the International Trade Trade Agreement “in helping to alleviate customs duties and commercial barriers over more than half a century.
She said that “the American civil aviation sector is a success story that President Trump is searching for, as the sector leads the civilian space industries worldwide.”
She explained that 84 percent of production takes place within the United States, stressing that Washington “does not need to fix the remaining 16 percent”.
She added that the current trade framework is good economy and national security, “which is a vital part of preserving our national security over time.”
Experts warn that for manufacturers, potential customs duties will be more like sands that disrupt a machine that was working completely smoothly over decades.
Experts believe that the proposed customs duties may hinder the supply chain, which is still recovering from the consequences of the Kofid -19.
Aircraft delivery operations
“To avoid the deterioration of the situation, we demand that the air and satellite industries sector be kept without commercial wars,” said the Director General of the Air Transport Union, “IATA” Willie Walsh, during the organization’s general assembly last week.
Meanwhile, AIA explained that “there is a great demand for planes and cut them, while the supplies are limited.”
She warned that the introduction of new supply bodies and the expansion of capabilities is a complex and expensive process, and it takes a long time, noting that finding mourners who are able to fulfill strict safety certificates is something that may “take up to ten years.”
In turn, the company “Delta Airlines” defended the need to keep the situation the same, warning that the proposed fees “will disrupt the ability of Delta to maintain its current course.”
She added: “If customs duties are imposed on cutting when she enters the United States, then Delta will be in front of a competitive obstacle compared to her competitors abroad.”
And she added that this “will arrange unexpected taxes on the purchases of the Delta for aircraft contracted years ago.”
The president of the company “Delta” Ed Bastian stressed in late April, that the company “will not pay customs duties on any delivery of aircraft we take”, adding that it “works closely with European Airbus” to alleviate the effect.
“Delta” indicated in her message to Lottennik that she currently has 100 aircraft she requested from “Boeing” and that she demands that “Airbus A220” aircraft that she requested in Mobile in Alabama mainly will be produced.
But she warned that if the fees are imposed, “Delta would likely be forced to cancel existing contracts and reconsider the contracts that are being negotiated.”
