Commerce Department Cites National Security Threats from Aircraft Imports

On May 1, the US Department of Commerce opened an investigation into imported commercial jets, engines, and other components due to concerns for national security. This probe comes as airlines search for delivery alternatives that would skirt recent tariffs under President Trump.

The national security investigation, which remained under wraps for over a week after it began, asks the public to submit comments on "the impact of foreign government subsidies and predatory trade practices on the competitiveness of the commercial aircraft and jet engine industry.” It also explores current and projected demand in commercial aviation and how the international supply chain fulfills it.

The probe may shine some necessary light on how recently implemented Trump tariffs have shaken the commercial aviation industry. For the last 50-ish years, the aviation industry has been able to skirt import fees on international suppliers under the Civil Aircraft Agreement. This has proved beneficial for all parties, with no one daring to threaten such an interconnected and fragile system… until now.

Delta Air Lines has been very publicly troubled by these new charges, especially with 43 more aircraft expected from Airbus by the end of the year. The carrier’s CEO Ed Bastian clarified that they “will not pay tariffs on any aircraft deliveries we take,” and would instead “defer any deliveries that have a tariff on it.”

General Electric CEO Larry Culp has also not been afraid to speak out against the tariffs, advocating for President Donald Trump to uphold the rules of the 1979 Civil Aircraft Agreement. Though GE has yet to face real delays, one of its major suppliers, Howmet Aerospace, has mentioned halting deliveries if the situation gets too rough. This would put a big damper on GE’s Leap 1A engine since Howmet is in charge of developing a new high-pressure turbine blade for the design.

Boeing, which also uses Howmet Aerospace as a supplier, may be facing similar challenges as it battles already low production rates. The company is working to navigate a supply chain stressed by both policy uncertainty and ongoing parts shortages.

FMI: www.commerce.gov