Aerospace escapes tariff regime under new US-EU trade agreement

Aircraft and components will be exempt from tariffs under the new transatlantic trade agreement between the European Union and USA.

European Commission president Ursula von der Leyen says the aerospace sectors are among the “strategic products” contained on a “zero-for-zero” tariff list.

This list also features semiconductor equipment, critical raw materials, certain chemicals and a number of other products.

European trade commissioner Maros Sefcovic states that the zero-tariff list comprises goods sectors “where it is in our shared interest to strengthen our trade”.

“This list remains open to further additions,” he says.

The trade agreement was unveiled on 27 July.

“Over the past few months, we have gained a better mutual understanding of each side’s sensitivities,” says Sefcovic.

“We can relate to the objective of re-industrialising the US economy, as we are pursuing the same goal ourselves.”

Von der Leyen says the agreement – which includes a 15% tariff rate on the “vast majority” of EU exports – will deliver “stability and predictability”.

“This 15% is a clear ceiling. No stacking. All-inclusive. So it gives much-needed clarity for our citizens and businesses,” she adds. “This is absolutely crucial.”

Von der Leyen says that the two sides will also address the “common external challenge” of overcapacity for aluminium and steel.

“To reduce barriers between us, tariffs will be cut,” she says, adding that a quota system will be put in place.