Divisions over U.S. tariffs have been in plain sight at the Paris Air Show, with political leaders from multiple aerospace nations trying to find a way through or around the problem. Canada this week signaled its intent to decouple from its immediate neighbor and forge closer ties with Europe, while U.S. Transportation Secretary Sean Duffy hinted that the Trump Administration may consider removing aviation from its standoff with what it views as trade adversaries.
Speaking during a fireside chat yesterday with Aerospace Industries Association president and CEO Eric Fanning, Duffy insisted that the U.S. is legitimately using tariffs to rebalance trade deficits. However, he acknowledged that free trade has benefited aviation. “It’s been remarkable,” he said. “The White House understands that. If you go there and see the new parts of what they are doing, it’s a lot.”
On this basis, the U.S. position could be about to change. “I would make the point that we should take aviation off the negotiating table going back to 1979 [when the Agreement on Trade and Civil Aircraft was signed], and that only helps us,” Duffy stated. “This would take negotiation leverage away from some of our partners, and that would be beneficial to the U.S.”
But Duffy insisted that the U.S. is resolute in its determination to rebalance trade by imposing tariffs and removing other barriers to American exports. “If you drive around a European city, how many American cars do you see? Not many. If you drive around America, [you see] many European cars,” he said.
“There was a time that we needed to help countries and let them freely sell into the U.S., and we allowed them to set barriers to protect their industries, but we're well beyond post-World War II. It’s different economies,” Duffy commented. “The fight is right. It's the right fight to have.”
Canadian Minister Says It’s Time to Decouple from U.S.
At the Paris Air Show, Canadian minister of industry Mélanie Joly doubled down on prime minister Mark Carney’s position that the country is currently in a “trade war” with the U.S. She applauded the decision by some Canada-based aerospace companies that are diversifying from the U.S. market.
“I think Canadians were shocked by the decision by the Trump Administration in February to impose illegal and unjustifiable tariffs, which later was a direct attack on our workers, particularly in the auto sector and particularly also in the steel and aluminum sectors,” she said. “What business people themselves have seen is that they need to do much more east-west business, not necessarily north-south like how Canada is currently organized.”
Joly also stressed the importance of free trade agreements with other countries. “We already have a free trade agreement with the EU. We have one also with the UK. We're the only G7 country that has a free trade agreement with all G7 countries,” she said.
“With the U.S. right now, that free trade agreement is in question, but our strategy is to make sure that as a government we can lead the way, and then business people are able to benefit from the opening of doors that we're doing, particularly now in France and in Europe.”
When asked if that also expanded into conversations around rearming Europe and making its defense industry more autonomous from the U.S., Joly said, “The conversation started six months ago and it was well seen by many member states of Europe.”
“We have the same geopolitical stance on many things, including Ukraine, and we have the same vision of ‘stronger together’ through NATO. Canada needs to do its own work in investing in defense. I think we have a lot to bring to the table.”
Meanwhile, on Monday, the UK aerospace industry was boosted by news that President Donald Trump has agreed to waive all tariffs on its exports to the U.S. This concession was part of the finalization of a trade deal between the UK and the U.S.
During the G7 meeting in Canada, Trump continued to insist that he would not accept the European Union’s proposals for a trade deal. He recently threatened European states with a 50% tariff on most goods.