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US transportation secretary calls for return to zero-tariff policy on aviation

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US transportation secretary calls for return to zero-tariff policy on aviation
Policy
Webp sean duffy
Sean Duffy United States Transportation Secretary | Official Website

United States Transportation Secretary Sean Duffy has called for a return to the zero-tariff policy that civil aviation previously enjoyed. This move is seen as beneficial to the aerospace industry, which has thrived under free trade conditions. However, current tariffs are part of broader trade negotiations, with the Trump administration's tariffs affecting aircraft deliveries from companies like Airbus and Embraer.

Duffy expressed his views at the 2025 Paris Air Show, emphasizing the positive impact of free trade on aviation: “You look at what free trade has done for aviation. It's been remarkable for them. It's a great space of net exporters." He noted that while the White House understands this, they face complex tariff issues. Duffy advocates for removing aviation from negotiation tables by reverting to the 1979 agreement.

Despite some temporary cuts in tariffs imposed in April, a 10% tariff remains on nearly all commercial aircraft and parts imports. The Department of Commerce's "Section 232" investigation into imported aircraft and parts could lead to higher tariffs. These policies have already impacted manufacturers and operators, with Alaska Airlines delaying delivery of two Embraer jets to avoid additional costs.

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Airlines are finding creative solutions to bypass tariffs; Delta Air Lines recently flew an Airbus A350 from Toulouse to Tokyo before bringing it to the US. Many carriers have opposed additional costs throughout their supply chains.

In contrast, a new US-UK trade deal removes tariffs entirely for UK aerospace goods, benefiting companies like Rolls-Royce and GE Aerospace by maintaining a duty-free environment.

Duffy's comments coincide with significant orders at the Paris Air Show, including Taiwan's Starlux ordering additional A350-1000s and Egyptair acquiring more A350-900s. Vietnam’s Vietjet signed an MoU with Airbus for A321neos, with other orders from Saudi Arabia’s Riyadh Air and AviLease, as well as Japan’s ANA Holdings.

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