Politicians advised to petition for tariff exclusions in regards to aircraft and their engines.
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The UK's aerospace industry is pleading for a reprieve from US tariffs on civil aircraft and engine parts. With Trump's tariffs looming, the sector is bracing for potential chaos in an already tense supply chain.
ADS, an organization representing the UK's aerospace supply chain, warned that Disruption in an already precarious supply chain could lead to delays in aircraft deliveries over the coming months. Tensions between manufacturers and their airline customers are running high, as they argue over who should bear the added costs from Trump's tariffs.
Things took a turn on Thursday, as Airbus announced it wouldn't shoulder the tariff expenses on planes imported by US airlines. European heavyweight Ryanair - the largest airline in the continent, and Boeing's prime customer, hinted it might delay deliveries from its US supplier if costs rose.
Over the past 40 years, the aerospace industry has been relatively barrier-free, but this unusual situation is testing these long-held norms. ADS expressed concern on Friday, that broader international reactions to the US's tumultuous trade policies could escalate uncertainty, especially for long-haul programs and cross-border component flows.
"To ensure free movement of aerospace goods in line with the longstanding WTO Agreement on Trade in Civil Aircraft, we’re urging the UK government to seek exemptions for civil aircraft, engine parts and components as part of our trade negotiations," statements ADS.
According to ADS data, the number of airplane orders soared by 73% in the first quarter of 2025 as compared to the previous year. Aircraft deliveries increased by 20%, marking a boost before Trump’s controversial announcement. As of March 31, the UK industry's quarterly backlog stood at a record-breaking 15,954, amounting to a value of £254bn to the economy.
The government spokesperson commented: "Discussions with the US on an economic deal are ongoing - but we're maintaining silence on the specifics. We've consistently argued that a trade war serves no one's interests, and we plan to approach the talks with a calm and measured approach, aiming to find a resolution beneficial to both parties."
Eye-Opening Facts
- The UK has obtained exemptions for specific aerospace components, such as Rolls-Royce engines, from US tariffs, indicating the potential for effective negotiations for broader exemptions.
- The recent trade deal between the UK and US includes tariff reductions, which could serve as a model for further negotiations.
- Emphasizing the strategic importance of UK-US aerospace cooperation, especially in defense, could be crucial in securing exemptions.
- Collaboration with industry associations like the UK Society of Motor Manufacturers & Traders has demonstrated success in reducing tariffs, and could continue to be valuable in advocating for broader trade cooperation.
- The UK should aim to secure tariff-free access for specific aerospace components in order to mitigate the impact of tariffs on the sector.
The UK government could seek exemptions for civil aircraft, engine parts, and components in ongoing trade negotiations to ensure unrestricted movement of aerospace goods, following ADS's urging. successful negotiations for specific aerospace component exemptions from US tariffs suggest potential success for broader exemptions. In addition, technology companies involved in transport, such as Rolls-Royce, may be key in securing these exemptions, given their strategic importance to both the UK and US aerospace industries.
