US-EU Zero-for-Zero Tariffs on Aircraft Lift Transatlantic Supply Chains

Aircraft

The US-EU zero-for-zero tariffs on aircraft remove duties on planes and parts. The US-EU zero-for-zero tariffs on aircraft end months of costly mitigation. As a result, the US-EU zero-for-zero tariffs on aircraft should ease cash flow and scheduling for OEMs and MROs.

What the agreement changes now

The deal restores zero tariffs on aircraft, engines, parts, and MRO. It follows a blanket 10pc US duty imposed on 5 April. Trump had threatened a 30pc EU tariff from 1 August. The EU paused countermeasures after the breakthrough. The AIA welcomed lower barriers for civil and defense products.

How it intersects with Section 232

Uncertainty remains around the ongoing Section 232 probe. The investigation began on 1 May and has no published conclusions. Major OEMs opposed tariffs and urged a free-trade regime. Their stance likely shaped the zero-for-zero carveout for strategic goods. The scope also covers semiconductor tools and critical raw materials.

Transatlantic mechanics already saw targeted relief for the UK. The US waived tariffs on Rolls-Royce engines and parts in May. The UK confirmed on 17 June the waiver covers all UK aerospace goods. That move cushioned programs using UK-made systems and structures.

The agreement should reduce cost pass-throughs across supply chains. Airlines and Tier-1s can now normalize order flows and spares stocking. Meanwhile, MRO shops can plan slot capacity without duty risk. However, firms will still monitor any 232 outcomes closely.

The Metalnomist Commentary

Policy clarity beats mitigation every time in aerospace. This reset should stabilize pricing, lead times, and contract terms across the Atlantic. Watch 232 findings; any divergence could reintroduce friction at program level.