The U.S. government this week formally implemented its new trade agreement with the European Union, with the Commerce Department and Trade Representative’s office publishing guidance on how the standard 15% tariff will apply to most imports with the exception of aircraft and aircraft parts, as well as pharmaceuticals. Industry groups, including NBAA, welcomed the Trump Administration’s concession in zero-rating European aerospace products after it had implemented a 10% tariff on these earlier this year.
Issued yesterday, the guidance states that the zero rating is retroactive to imports made since September 1. The final trade agreement is consistent regarding deals the U.S. struck with the UK in June and Japan earlier this month.
However, aviation exports from Brazil and Switzerland remain subject to tariffs at the respective rates of 10% and 39%. Leaders of Brazilian aircraft manufacturer Embraer and Switzerland’s Pilatus continue to lobby for exemptions, with the latter pausing deliveries of its PC-12 and PC-24 aircraft to U.S. customers.
“Last year, U.S. civil aviation built a $104 billion surplus, leading all other manufacturing trade sectors, and has been an export leader since 1979, when the Agreement on Trade in Civil Aircraft established a zero-tariff level playing field with dozens of other countries,” noted NBAA president and CEO Ed Bolen. He added that the agreement will stimulate jobs and innovation in the U.S.