A large U.S. contingent returns to Paris for the biennial airshow as the industry faces surging demand across the board and, at the same time, turbulence surrounding tariffs that are bringing new levies on an industry that has enjoyed a duty-free status for decades.
For the Aerospace Industries Association (AIA), the show presents an opportunity to highlight to the global stage that the U.S. remains open for business. Importantly, in the context of the Trump administration's contentious tariff policy, the group also views it as an opportunity to signal to political leaders in Washington, D.C. that the U.S. industry has long delivered a positive trade balance for the national economy.
In fact, Capitol Hill is expected to send its largest contingent yet to the Paris Air Show. AIA is hosting delegations from both the House and Senate during events at the opening of the week-long event.
Meanwhile, as the White House mulls the future of tariffs and engages in global negotiations, AIA released an economic study to highlight the positive impact of U.S. companies.
Prepared by PwC, the study found that the U.S. commercial aerospace industry produces $545.2 billion in total economic output (including $306.9 billion in aerospace products), contributes $284 billion to the GDP, supports 1.6 million jobs, and produces $157.2 billion in total labor income. Further, the study highlights that, with the exception of petroleum and coal, aerospace is the only manufacturing sector in the U.S. to maintain a positive trade balance over decades.
“The American commercial aerospace industry drives economic growth by every measure,” said Eric Fanning, AIA president and CEO. “From creating well-paying jobs, to investing in cutting-edge research and development, to supporting a healthy supply chain, our industry is a success story across the board. Our new report makes clear the need for a strong policy and trade framework that protects and promotes this high-value, export-driven sector for the long term.”
The report comes as the White House has launched a “Section 232 National Security Investigation of Imports of Commercial Aircraft and Jet Engines” to explore how aerospace trade impacts the U.S. economy and national security. This research has drawn a mixed reaction within the industry, with some fearing that it may be used to provide a basis for expanding tariffs, while others see it as an opening to educate on the importance of maintaining trade relations and how it has benefited the U.S. industry.
Tariffs Not Needed to Protect U.S. Industry
Fanning told AIN that he believes the investigation presents an opportunity. “It’s critically important that the U.S. government understands that in many ways, [the] aerospace and defense industry is already where the current administration is trying to get to across industries [with ongoing trade negotiations]. We already have it, so we want to protect that,” he said.
That positive trade balance—spanning most of 70 years—is also part of “the big message” that AIA hopes to convey this week, Fanning said. “We always want to make sure people are aware of the impact that the industry has on our economy, not just our security, but in the current context of refocusing our trade relationships.”
He added that it takes a long time to build an industrial base such as the U.S. has. “It’s a reminder that the world wants to buy what America produces, and it’s in our interest to make sure they can do that. It is a reminder on both sides of the negotiations that are taking place globally between the United States and other countries that it’s important to keep that market open.”
Fanning acknowledged that with orders, various sides of trade negotiations are using what leverage they can. But he noted that as orders have been pulled and then reinstated, it has validated the desire for American products.
“That’s a lot of negotiations, and I think there’s going to be continued turbulence until we get to some resolution,” he said. “But the companies are prepared for that. I think their customers are prepared for that and are working through it.”
As for the trade negotiations, Fanning noted, “The president wants our trade relationships structured differently than they are now. That doesn’t mean he has different goals in mind. We think that our exporting situation and our trade relationships globally are what the president wants across the board.”
He added that he believes that many in the administration have been receptive to the industry’s message, and others are learning about its economic standing.
This comes against a backdrop where exports and sales have been up across both the defense and civil sides. Defense spending has remained strong globally as countries step up security in the face of geopolitical conflicts.
Commercial demand has been resurgent post-Covid. Many countries are striving to step up spending in-house. “There is stiff competition out there,” he said. However, at the same time, capacity constraints remain a global issue.
“The capacity of the industrial base isn’t built for all this increased spending, so the United States is trying to ramp up,” Fanning said.
There are areas where it would be helpful to “reshore” in the U.S., such as critical minerals, he said, but added that it takes time and resources. “We’re not in a perfect place as an industry,” he said. “We’d like to see some changes so that we can domestically source more critical components in the supply chain, and we’re always focused on the fragility and the health of the supply chain.”
The health of the supply chain has become a key focus of concern as the trade negotiations continue.
A large U.S. contingent returns to Paris for the biennial airshow as the industry faces surging demand across the board and, at the same time, turbulence surrounding tariffs that are bringing new levies on an industry that has enjoyed a duty-free status for decades.
For the Aerospace Industries Association (AIA), the show presents an opportunity to highlight to the global stage that the U.S. remains open for business. Importantly, in the context of the Trump administration's contentious tariff policy, the group also views it as an opportunity to signal to political leaders in Washington, D.C. that the U.S. industry has long delivered a positive trade balance for the national economy.
In fact, Capitol Hill is expected to send its largest contingent yet to the Paris Air Show. AIA is hosting delegations from both the House and Senate during events at the opening of the week-long event.
Meanwhile, as the White House mulls the future of tariffs and engages in global negotiations, AIA released an economic study to highlight the positive impact of U.S. companies.
Prepared by PwC, the study found that the U.S. commercial aerospace industry produces $545.2 billion in total economic output (including $306.9 billion in aerospace products), contributes $284 billion to the GDP, supports 1.6 million jobs, and produces $157.2 billion in total labor income. Further, the study highlights that, with the exception of petroleum and coal, aerospace is the only manufacturing sector in the U.S. to maintain a positive trade balance over decades.
“The American commercial aerospace industry drives economic growth by every measure,” said Eric Fanning, AIA president and CEO. “From creating well-paying jobs, to investing in cutting-edge research and development, to supporting a healthy supply chain, our industry is a success story across the board. Our new report makes clear the need for a strong policy and trade framework that protects and promotes this high-value, export-driven sector for the long term.”
The report comes as the White House has launched a “Section 232 National Security Investigation of Imports of Commercial Aircraft and Jet Engines” to explore how aerospace trade impacts the U.S. economy and national security. This research has drawn a mixed reaction within the industry, with some fearing that it may be used to provide a basis for expanding tariffs, while others see it as an opening to educate on the importance of maintaining trade relations and how it has benefited the U.S. industry.
Tariffs Not Needed to Protect U.S. Industry
Fanning told AIN that he believes the investigation presents an opportunity. “It’s critically important that the U.S. government understands that in many ways, [the] aerospace and defense industry is already where the current administration is trying to get to across industries [with ongoing trade negotiations]. We already have it, so we want to protect that,” he said.
That positive trade balance—spanning most of 70 years—is also part of “the big message” that AIA hopes to convey this week, Fanning said. “We always want to make sure people are aware of the impact that the industry has on our economy, not just our security, but in the current context of refocusing our trade relationships.”
He added that it takes a long time to build an industrial base such as the U.S. has. “It’s a reminder that the world wants to buy what America produces, and it’s in our interest to make sure they can do that. It is a reminder on both sides of the negotiations that are taking place globally between the United States and other countries that it’s important to keep that market open.”
Fanning acknowledged that with orders, various sides of trade negotiations are using what leverage they can. But he noted that as orders have been pulled and then reinstated, it has validated the desire for American products.
“That’s a lot of negotiations, and I think there’s going to be continued turbulence until we get to some resolution,” he said. “But the companies are prepared for that. I think their customers are prepared for that and are working through it.”