Overview
- The U.S. Commerce Department has officially opened a Section 232 investigation into whether imported commercial aircraft, jet engines, and parts pose a national security threat.
- The probe, initiated on May 1, could result in new or higher tariffs on aerospace imports, with public comments being collected over the next 21 days.
- Aerospace imports have historically been duty-free under the 1979 Civil Aircraft Agreement, but most currently face a 10% tariff, with industry stakeholders lobbying for a return to duty-free status.
- On May 8, the U.S. reached a provisional agreement with the UK to exempt British-made Rolls-Royce engines from tariffs, highlighting ongoing bilateral negotiations.
- The aerospace sector, which exports over $135 billion annually and sustains a $75 billion trade surplus, argues that tariffs could disrupt supply chains and impact domestic manufacturing jobs.