By Sharon Terlep

The Trump administration's new tariffs upend a trade deal that has allowed Boeing, Airbus and other aerospace manufacturers to build aircraft and jet engines largely without tariffs since the 1980s, an aerospace industry group said.

The latest duties are set to bring an end to tariff exemptions that these companies and their suppliers have enjoyed under a World Trade Organization deal that includes the U.S., China, Canada, most European Union nations and a host of other countries.

Without an exemption, aerospace manufacturers face higher costs. Airlines could pay more for everything from new aircraft to spare parts.

The 1980 trade pact opened the door for broad U.S. commercial jet exports into Europe. "You saw tremendous export growth," said Dak Hardwick, vice president of international affairs for the Aerospace Industries Association.

Shares of Boeing, which counts French and Japanese suppliers in its global footprint, fell 8% on Thursday, leading the industry's selloff. Boeing, the largest U.S. exporter by dollar value, exports about 80% of the commercial airplanes it builds.

Airbus, with a manufacturing plant in Mobile, Ala., is expected to face tariffs on components it needs to build jets at its U.S. production site, as well as on aircraft built at its facilities in France and Germany.

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April 03, 2025 17:51 ET (21:51 GMT)

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