Airbus tells U.S. airlines they must pay tariffs on new planes

Key Takeaways

• Airbus will no longer absorb U.S. tariffs—airlines must pay for imported European planes and parts starting 2025.
• Delta and American Airlines oppose covering tariffs, seeking loopholes or alternate delivery methods to minimize new costs.
• Tariff changes increase financial uncertainty, potentially affecting airline profits, business plans, and ticket prices for passengers.

Airbus tells U.S. airlines they will pay the cost of tariffs on imported aircraft and key airplane parts. This move comes as trade tensions continue and shows how global rules and government decisions can change costs for some of the world’s biggest airlines. Many leaders in aviation and trade will be watching this change closely as it could shape future business plans and government meetings about tariffs.

What’s Happening: Airbus Announces Tariff Costs Will Shift to Customers

Airbus, one of the largest aircraft manufacturers in the world, has informed its customers in the United States 🇺🇸 that new and upcoming tariff costs will fall on the airlines buying the jets, not on Airbus itself. The company’s CEO, Guillaume Faury, said during the company’s first-quarter 2025 earnings report that when jets are shipped straight from Europe 🇪🇺 to the United States 🇺🇸, airlines will have to pay the import tariffs. This rule covers bigger, widebody models like the popular A330 and A350, along with many important airplane parts that are shipped from Europe to the United States 🇺🇸.

“We are exporting from Europe to the United States, and that’s an import for the customers. They are also not very much willing to pay tariffs, but it’s on them,” Faury stated. This statement sets the new rule in no unclear terms—U.S. airlines must pay for tariffs on direct imports from Europe 🇪🇺.

Tariffs were first put in place under President Trump. When trade disagreements boiled over between the United States 🇺🇸 and Europe 🇪🇺, tariffs on imported aircraft and parts became a real burden for companies on both sides. But Airbus handled those costs for a while. Now, that’s changing.

How the New Policy Works: Who Pays, and for What?

Here’s how the new rules break down:

• For planes delivered straight from Europe 🇪🇺 to the United States 🇺🇸, U.S. airlines pick up the entire tariff bill.
• For airplanes built at Airbus’s factory in Mobile, Alabama, only the imported parts are taxed with tariffs. In those cases, the cost is shared—Airbus pays the duties on supplies sent to the Alabama plant (like wings or engines), but the cost of finishing the plane and getting it into the United States 🇺🇸 will still depend on how much was imported.

This split is clearly shown below:

Think of it this way: if an airline in the United States 🇺🇸 buys an A350, and the aircraft is shipped straight from France 🇫🇷 or Germany 🇩🇪, the airline will get billed for the tariffs at the border. But, if the purchase is for an A320 or A220, and it’s assembled in Mobile, Alabama, the only costs subject to tariffs will be imported parts like wings, engines, or landing gear—much less than a whole finished plane.

Why It Matters: The Impact on U.S. Airlines

Airbus’s change matters because many American airlines have large orders with Airbus. For example, American Airlines has over 140 Airbus planes yet to be delivered. This new policy means lots of money could be on the line, depending on how many deliveries are coming in the next year or two.

This surprise push of costs on to airlines comes at a tough time. U.S. airlines are already struggling with cost planning, dealing with supply chain snags left over from the worldwide pandemic, and facing the ups and downs in how many people are flying. Any new and unexpected cost, especially from tariffs, makes it harder for airlines to plan for the future.

Reactions from the Airlines: Not Happy, Looking for Ways Around

Many large U.S. airlines made it clear they are not happy about covering these new costs. Delta Air Lines and American Airlines both said they do not want to accept these charges without a fight or at least coming up with ways to avoid or reduce them.

Delta Air Lines is already using a “workaround” by sending some aircraft deliveries through a third country—like Japan 🇯🇵. By receiving the plane outside the U.S. and then bringing it in, they hope to reduce how much tariff they must pay. This move is not new; Delta and some others tried it before when earlier tariffs were in place.

Delta’s CEO, Ed Bastian, even warned that the airline might pause or cancel future plane deliveries if forced to pay these costs directly. This strong response shows how serious the situation is for airlines. Many leaders in the industry said they are looking for ways to get exceptions from the government or even hoping for new deals that might remove or lower tariffs on airplanes. They mention the Civil Aircraft Agreement of 1979 as a possible way to argue against these tariffs. This agreement, made by many countries, aimed to keep tariffs off commercial aircraft so airlines could buy the best planes for the best price, no matter where they are made.

The Bigger Picture: What This Could Mean for the Whole Industry

1. Financial Uncertainty Grows:
   • Airlines worry about surprise costs. If tariffs are high, this change could add millions of dollars to the cost of new planes. That makes it harder for companies to budget and plan how many planes they can afford.
   • Sudden changes in the cost of airplanes may slow the delivery of new jets and could lead to big swings in airline ticket prices or even change what routes airlines can offer.
2. Pressure on Supply Chains:
   • Making airplanes is complicated and depends on parts coming from around the world. Tariffs can slow down deliveries. If parts get held up at the border or if airlines can’t pay, planes may take longer to enter service.
3. Competitiveness in the Market:
   • With Airbus moving the costs of tariffs to airlines, some may decide to order fewer planes from Airbus and instead look at other companies. Some might keep their old planes longer. This may even create opportunities for other aircraft makers or push airlines to negotiate harder over price.
   • Airlines could also push back against tariff rules, calling for new talks between governments to roll back trade barriers.

As reported by VisaVerge.com, the move by Airbus to pass on tariff costs comes at a very sensitive time. The airline industry is still recovering from the worst effects of the pandemic, and demand for international travel is only just finding its feet again.

What Do the Tariffs Cover, and Why Are They Here?

Tariffs are extra taxes charged when goods cross a border. In this case, President Trump’s administration introduced extra taxes on European aircraft and components because of trade disagreements between the United States 🇺🇸 and Europe 🇪🇺. These disagreements were mostly about government support to airplane companies (like Airbus and Boeing). Governments argued that the other was helping their homegrown manufacturers too much, making it unfair for the others.

These trade fights led to the United States 🇺🇸 adding new costs to planes and parts coming from Europe. Over time, these tariffs bounced up and down depending on how talks went and what deals were reached. But now, with no new deal in sight, Airbus says it’s done paying on behalf of U.S. airlines.

How Will U.S. Airlines Respond? Strategies and Options

Now that the extra burden is firmly in their court, U.S. airlines have a few choices:

1. Absorb the Cost: This means they pay more, which could hurt profits or make it harder to lower ticket prices.
2. Pass Costs to Passengers: If they do this, you might see higher fares on tickets to cover the new expense.
3. Renegotiate with Airbus: Airlines could try to get better deals or discounts from Airbus, or look for flexible timing on payments.
4. Find Loopholes or Workarounds: As Delta Air Lines has done, rerouting deliveries or using creative paperwork could lower the final bill.
5. Push for Policy Change: U.S. airlines, working through industry groups, may talk to the U.S. government to find ways to reduce or eliminate the tariffs.

Some insiders suggest there could be legal steps, or U.S. airlines might encourage President Biden’s team to return to talks with European 🇪🇺 leaders and reach a new deal that removes or lowers tariffs. If the Civil Aircraft Agreement of 1979 is brought up, it could spark more talks on whether airplane tariffs are fair in today’s market.

What Does This Mean for the Average Traveler?

While much of this may sound like something only airline bosses worry about, it can reach passengers too. If costs stay high, airlines may raise ticket prices or cut back on new, state-of-the-art jets. Fewer brand-new planes could mean older aircraft on some routes, which might affect comfort, fuel use, or even the number of direct flights offered by your favorite airline.

Delays in new aircraft deliveries—even by a few months—can lead to fewer seats offered on busy routes. When that happens during busy travel seasons, it can be harder to find cheap fares or non-stop trips.

What’s Next for Airbus, Tariffs, and U.S. Airlines?

Over the coming months, airlines and Airbus will be watching Washington and Brussels closely. Both the United States 🇺🇸 and the European Union will need to decide if they are satisfied with the current import taxes or if they might return to the table to strike a new deal. If enough economic pressure builds up, or if airlines push hard enough, new talks could happen that adjust or remove these tariffs, especially as many airlines make up the bulk of their fleets with Airbus jets.

In the meantime, U.S. airlines must adjust quickly. They must work with their finance teams to plan for the added costs, talk with Airbus about delivery schedules, and keep an eye on possible changes to trade rules or import taxes coming from government meetings.

For those interested in the official history and details about import tariffs and government rules for aircraft, information is available from the United States International Trade Commission at their official website.

Airbus, U.S. airlines, and the ongoing debate about tariffs make this a critical period for anyone working in or following the airplane business. With billions of dollars tied up in plane orders—and so many jobs depending on stable costs and trade rules—the next steps from governments, companies, and industry leaders will shape the skies for years to come.

In Summary: The Key Points

• Airbus has shifted the cost of tariffs to U.S. airline customers for planes or parts imported from Europe 🇪🇺.
• Major airlines are not happy, with some looking for ways to avoid paying or even talking about suspending deliveries.
• The new policy adds uncertainty and new costs for U.S. airlines as they recover from tough years.
• Government rules and trade agreements, like the Civil Aircraft Agreement, may get attention as a way to solve these problems.
• Passengers may feel the ripple effect, with potential ticket price hikes or slower rollouts of new planes.

Staying informed will be important for travelers, industry workers, and airlines themselves. The world of airplanes, tariffs, and global trade is changing, and every decision from companies and governments could make a big difference in your next flight’s price, comfort, or timing. For those watching the future of the aviation business, this is a situation that’s anything but settled.

Learn Today

Tariffs → Taxes imposed by governments on imported goods, like aircraft, to increase their cost and influence trade balances.
Civil Aircraft Agreement → A 1979 treaty aiming to eliminate import tariffs on civilian airplanes and parts among major trading countries.
Widebody → Large aircraft type, like Airbus A330 or A350, used on long-haul international flights due to extra capacity and range.
Supply Chain → The complex international network of companies and resources involved in making and delivering airplane parts and products.
Import Duties → A specific type of tariff—direct government tax applied when goods cross international borders for sale or use.

This Article in a Nutshell

Airbus has shifted the burden of new U.S. tariffs onto American airlines, requiring them to pay extra for imported aircraft. With tariff policies unresolved, major carriers like Delta and American are seeking ways to cope. This move could raise costs industry-wide and potentially impact airline ticket prices and future aircraft deliveries.
— By VisaVerge.com

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