Trump’s administration has begun research on the introduction of commercial aircraft, jet engines and related components that could lead to new invoices over the many they have already implemented.
According to a federal announcement published online on Friday, Commerce Secretary Howard Lutnick launched the investigation on May 1, according to the provision of the expansion of trade, which allows the president to impose invoices on foreign products in the interest of national security.
President Trump has already used this power to impose invoices on aluminum and steel and launch similar research, including last month on semiconductor and medicinal products.
As part of the new survey, the Department of Commerce said, it will seek the industry’s inflows at the request for aircraft, engines and spare parts and if this could be fulfilled in the domestic market. The role played by foreign suppliers on the market. the extent to which foreign governments favor these businesses; and other issues.
Import invoices could harm the aerospace industry, which has created one of the largest trade surpluses of any industry for years, but is largely based on specialized suppliers who have spread around the world. In some cases, critical parts can only be produced by a few manufacturers or only one. The aerospace industry is expected to export about $ 125 billion this year, according to Ibisworld, second only to oil and gas.
“Our records for commercial surpluses, job creation and innovative contributions to both air transport and national defense are the best news story about the US economy among all areas of processing,” said Eric Faning, president of the Aerosthemic Union. “We are looking forward to dealing with the Ministry of Commerce to identify opportunities to strengthen our domestic supply chain, while maintaining the commercial framework that allowed our world leadership in aerospace.”
Boeing, which makes commercial planes, recently described the immediate impact of the invoices that Mr Trump had imposed as far as possible, but said he was worried about the tax they could have on his suppliers. Company CEO, Kelly Ortberg, told Wall Street analysts last month that Boeing pays 10 percent invoices for wide -bodied aircraft accessories imported from Japan and Italy, but that the company is expected to retrieve them.
The RTX, which makes the aircraft and the parties, is estimated last month that this year’s invoices will cost $ 850 million. GE Aerospace, another engine manufacturer, said that $ 500 million is expected this year in invoices.
Governments often tried to protect and cultivate their airline industries with invoices and subsidies. The United States and the European Union have been protesting for many years as to whether the other provides unfair subsidies to Boeing and Airbus, the world’s largest commercial aircraft manufacturers. Airbus is based in France and has extensive businesses in various European countries.
