Chris Sloan

At the U.S. Chamber of Commerce’s Global Aerospace Summit, the topic of tariffs dominated the discussion. During the event in Washington, D.C., last week industry leaders didn’t hold back in calling for a return to tariff-free skies.
Guillaume Faury, CEO of Airbus, opened with a reminder of what’s at stake. “The so-called zero for zero, the 1979 agreement with no tariffs on aerospace goods, has led to the very successful benefits for all involved,” he said. Faury boasted Airbus’s role in strengthening the U.S. aerospace trade position, particularly with its FALs in Mobile, Alabama which will be the fourth largest aircraft manufacturing facility in the world: “We contribute to the positive balance of aerospace in the U.S.”
The European aerospace leader called the current setup a “North Atlantic Ecosystem” that binds the U.S. and European Union together. “If zero for zero did not get approved, how much would that have put a dampening effect in terms of orders, whether it’s from airlines or leasing companies?” Faury asked rhetorically. “The very strong demand that we see in the market … would’ve had negative impact on the cost base, on the efficiency of what we do. We would have continued to do the same, but what we have now is much more effective.”
<h2>Capitol Hill: “A Bargaining Tool for the United States”</h2>
U.S. lawmakers at the event recognized the political heat around tariffs. Rep. Troy E. Nehls (R-Texas), chairman of the House Subcommittee on Aviation, told the audience, “There’s so much controversy about the tariff and how they’re affecting the American businesses … but the idea that [Trump] exempted aircraft parts — Donald Trump has looked at this and said, ‘Listen, we’ve been taking it in the shorts for years from these other countries. It’s just free and fair is what it is.’”
Although Nehls admitted he doesn’t like tariffs, he framed them as a tool to force investment back home: “You see a lot of these companies now…coming back into the United States. You’re seeing more investment in the United States into the trillions. So there’s gonna be a little pain up front, there’s no question about [that], but I support the administration…it is just a bargaining tool for the United States and for the president.”
<h2>Industry: Jobs and Global Competitiveness on the Line</h2>
Aviation manufacturers made a united call for maintaining open trade channels. Dorothy Reimold of the Aerospace Industries Association pointed out that the industry employs more than 2.2 million Americans, calling it “a very, very robust industry for the U.S.”
John Murphy of the U.S. Chamber of Commerce called aerospace “one of the crown jewels of American industry” and highlighted that “more than a third of world trade moves by air — cargo is just a huge part of America’s competitiveness.”
Paul Feldman of GAMA credited the Modern Skies Coalition for aligning the industry’s messaging: “When the tariff issue really started to move, we were able to pivot and build on that collaboration. We agreed on a basic message, which was we need to preserve the 1979 agreement on trade and civil aircraft.”
Kristie Greco Johnson of NBAA added: “Thanks to a level playing field for the last 45 years under the 1979 agreement, we’ve been able to compete and compete well with consistent trade surpluses. … The jobs that are created in this industry … aren’t just manufacturing new aircraft, it’s the maintenance, overhauling … that have a lifespan from anywhere from 10 to 30 years.”
Panelists agreed that a side, but crucial benefit of the agreement is “Products made domestically and overseas have to be [at] that same high level of safety.”
<h2>Brazil and Embraer: Fighting the 10% Tariff</h2>
The topic took on real-world urgency as Avelo Airlines announced its order for 50 Embraer E2-E195 jets. CEO Andrew Levy downplayed the impact of current tariffs, noting that 40% of the aircraft’s content is U.S.-made: “I don’t think it even would be 10% because a lot of the content of this aircraft is US made. … I believe that aviation assets should be tariff at zero worldwide. And I believe that that’s eventually where we will get to.”
Arjan Meijer, CEO of Embraer Commercial Aviation, was more blunt: “The 10% is a growth number. It’s being paid for the customer as we speak. … Any tariff is just distorting the market and creating behaviors that are not favoring global manufacturing … in the end, those costs will fall back to the passenger. And I think that’s what we should avoid.”
Scott Kirby, CEO of United Airlines, wrapped up with a broader take on market sentiment. “All the noise that happened earlier in the year — geopolitical questions, the budget, questions about tariff — as you get certainty whether you like the outcome or not … people get back to living their lives and businesses get back to traveling,” he concluded.
This article was first published by Leeham News &amp; Analysis, which is part of the AIN Media Group.
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