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Mon, Apr 14, 2025

Tariff Chaos Brings ‘Unprecedented Uncertainty’ to Jet Deliveries

Questionable Policies Could Stall Years-Old Plane Orders

Confusion regarding recent on-and-off tariff policies in the US has caused unintentional disruption to aircraft deliveries. With modern jets costing tens of millions, smacking new charges onto imports would put a significant strain on both manufacturers and operators.

If you're wondering why this hasn’t been an issue with previous tariffs, the industry has historically been exempt from import taxes thanks to a 1979 agreement between the U.S. and Canada. The only slip was an 18-month transatlantic dispute over Boeing and Airbus subsidies in 2020-2021.

However, times are changing under President Trump’s second term. An Airbus A220 being assembled in Mirabel, Quebec, and destined for Delta Air Lines was painted and nearly ready for delivery when talk of a 25% import duty on Canadian goods surfaced. Although the aircraft likely meets the requirements of the U.S.-Mexico-Canada Agreement (USMCA) and should be exempt, the sheer idea of having to chalk up an extra 25% on a plane that already costs $40 million was enough to cause a flurry of paperwork and internal briefings at Airbus.

This is not an isolated case. Engines built in Canada by RTX also experienced shipment delays to U.S. clients as the company scrambled to produce documentation proving USMCA compliance. Though no new tariffs have officially taken effect, the threat alone has been enough to disrupt logistics and contract timelines.

Delta CEO Ed Bastian has made the airline’s position crystal clear: if tariffs stand for aircraft deliveries, the airline won’t be paying them. If push comes to shove, they’ll end up deferring planes.

"The one thing that you need to know we're very clear on is that we will not be paying tariffs on any aircraft deliveries," Bastian stated. "We've been clear with Airbus on that, and we'll work through and see what happens."

Airbus currently expects to deliver 43 aircraft to Delta through the end of 2024. With several of those coming from non-U.S. factories, the stakes are high. Airbus CEO Guillaume Faury has already hinted that the company could place favor on non-US buyers if the situation remains unstable.

FMI: www.delta.com

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