Airbus and UK Government react to increased US tariffs on aircraft

Airbus Wing Integration Centre in Filton is an advanced testing centre for large structural components. It enables the aerospace giant and its partners to develop cutting edge ideas to help underpin the UK as a world leading aerospace sector. Image: Airbus
Airbus Wing Integration Centre in Filton is an advanced testing centre for large structural components. It enables the aerospace giant and its partners to develop cutting edge ideas to help underpin the UK as a world leading aerospace sector. Image: Airbus

Airbus and the UK Government have reacted to the US increasing tariffs on the plane maker's aircraft from 10% to 15% as part of a dispute over subsidies. 

Airbus and the UK Government have reacted to the US increasing tariffs on the plane maker's aircraft from 10% to 15% as part of a dispute over subsidies.


The revised retaliatory tariffs on EU and UK products are part of a World Trade Organization (WTO) dispute over subsidies to Airbus.

An increase in the additional duty rate imposed on aircraft imported from the EU from 10% to 15% will become effective in a month's time (18th March).

Aircraft maker Airbus designs and manufactures the wings for its aircraft at its two sites in the UK, employing 13,500 people. The manufacturer also employs around 110,000 in its UK supply chain

Filton in South Gloucestershire is where engineering and design work takes place, and a site in South Wales is where all wing assembly takes place, and other major wing component manufacturing.

Related: Final Airbus A380 wing leaves Broughton in Wales


The International Trade Secretary speaks frequently to the US Trade Representative Robert Lighthizer and has been making the strong case for the US Government not to impose further tariffs.

A UK Government statement commented: “We are deeply disappointed by the continued application of retaliatory tariffs under the Airbus dispute, which harm UK and US industries and the decision by the United States Trade Representative to increase these on aircraft.

“The UK maintains that it is now compliant with WTO rules on this issue and secured full repayment of the A350 loan with interest.

“We will continue to work with other Airbus nations, France, Germany and Spain, and the EU on a negotiated settlement, and on the use of Boeing retaliatory rights as and when awarded.”

Airbus’s statement added: “The decision to impose tariffs further escalates trade tensions between the US and the EU, thereby creating more instability for US airlines that are already suffering from a shortage of aircraft.

“The decision ignores the many submissions made by US airlines, highlighting the fact that they – and the US flying public – will ultimately have to pay these tariffs.

“Airbus will continue its discussions with its US customers and work with them to mitigate effects of tariffs insofar as possible.

“Airbus has and will continue to push for a negotiated settlement to this 15-year-long dispute. The United States Trade Representative (USTR)’s further escalation complicates efforts to find a negotiated outcome to this dispute. This is regrettable.”

Airbus www.airbus.com

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Airbus

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