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EU-US trade deal brings immediate tariff relief for aviation industry

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EU-US trade deal brings immediate tariff relief for aviation industry
Policy
Webp boukadida
Ed Bastian CEO at Delta Air Lines | Delta Air Lines

After months of uncertainty and reduced demand, the European Union and United States have reached a trade agreement that is expected to benefit the aviation sector. The deal, announced last week, covers multiple industries including energy, steel, and agriculture. Aviation companies were among those most impacted by previous tariffs.

The agreement establishes a zero-for-zero tariff regime on all aircraft and component parts between the EU and US. This move was welcomed by major manufacturers such as Airbus and Boeing, who had faced the threat of significant tariffs on transatlantic imports. Earlier this year, a 25% tariff imposed by US President Donald Trump caused concern in the industry; this has now been lowered to 15%, with an exemption for aviation products.

At the International Paris Air Show in June 2025, United States Secretary of Transportation Sean Duffy expressed support for eliminating tariffs on aviation goods. The political agreement reached on July 27 is not yet legally binding but sets a framework for further negotiations before full implementation. However, the exemption for EU aircraft and component parts took effect August 1.

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According to an EU statement, this measure provides "immediate tariff relief for key EU industries" with plans to consider additional exemptions in future discussions.

Industry groups have responded positively to the development. Delta Air Lines CEO Ed Bastian said it would enable "growth of air travel as a key driver of economic expansion, innovation, and high-quality American jobs." GE Aerospace Chairman and CEO Larry Culp stated that the deal "recognizes the important role aerospace plays in powering economic growth, jobs, and innovation."

Airlines for Europe described the consensus as providing "long-term certainty" while warning that remaining US tariffs on other European sectors could still harm competitiveness across both regions.

During periods when tariffs were active earlier this year, airlines found ways to avoid extra costs. Delta Air Lines rerouted delivery of an Airbus A350 through Japan so that import taxes would not apply if it continued operating international flights. Delta’s leadership confirmed they would "not be paying tariffs on any aircraft deliveries we take." In Europe, Ryanair arranged with Boeing that any applicable US tariffs would be covered by the manufacturer; CEO Michael O'Leary also suggested using its UK brand registration to avoid EU-related duties due to separate agreements between the UK and US exempting such products from tariffs.

Boeing remains one of the primary companies affected by these developments. Founded in 1916 and led by CEO Kelly Ortberg (stock code BA), Boeing is a major planemaker whose business relies heavily on international trade agreements.

Organizations Included in this History
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