Aerospace companies are bracing for a potential escalation in trade tensions as the European Union prepares to target Boeing jets with retaliatory tariffs in response to existing US import duties on European goods, including Airbus aircraft, according to industry sources.The anticipated measures, expected to be announced Thursday by the European Commission, come as part of a broader plan to counter 10% US tariffs impacting around $100 billion in European exports. The move would mark the first significant tariff action between the EU and US aerospace sectors since 2021, reviving trade friction in the $150 billion global aircraft industry.EU Trade Commissioner Maros Sefcovic, speaking in Singapore on Wednesday, confirmed news agency Reuters that the bloc would unveil its planned counter-measures if ongoing negotiations with Washington fail to ease tensions. The Financial Times earlier reported that the EU intends to include civil aircraft—namely Boeing jets—on its tariff list.The European Commission and Boeing declined to comment on the developments.Currently, the EU faces 25% US tariffs on steel, aluminum, and automobiles, along with 10% reciprocal tariffs on other goods, including aircraft—a figure that could double to 20% after US President Donald Trump’s temporary 90-day suspension expires on July 8.The stakes are high for European airlines, many of which have placed large orders with Boeing. A potential hike in aircraft prices due to new levies could upend fleet planning and financial forecasts.Despite the looming tariff clash, aerospace rivals Boeing and Airbus have adopted a more unified stance compared to earlier disputes. During the 2020–2021 trade war centered on World Trade Organization subsidy cases, both companies found themselves at the heart of tit-for-tat tariffs. Now, industry leaders on both sides of the Atlantic are urging a return to tariff-free aerospace trade.Airbus CEO Guillaume Faury recently advocated for restoring duty-free trading, warning that escalating tariffs would leave “only losers” in the industry. He pointed to the previous tariff sequence that ultimately resulted in a truce and emphasized the need to avoid repeating that cycle.Boeing CEO Kelly Ortberg echoed similar sentiments in a Congressional hearing last month, reiterating the company’s commitment to free trade and calling for a resolution to the growing trade dispute.The broader aerospace sector has pushed for the revival of a 1979 international agreement among 33 countries that exempted aircraft and parts from tariffs—an arrangement that once underpinned global aerospace trade.Yet, the uncertainty has already begun to impact market behaviour. Ireland’s Ryanair, a major Boeing customer, has threatened to cancel hundreds of aircraft orders if new tariffs drive prices higher, warning it would seek to hold Boeing contractually accountable for any fallout from European countermeasures. However, with Airbus production slots sold out for much of the decade and strict terms limiting cancellations, analysts say carriers may find little room to maneuver.In the US, Delta Air Lines has signaled it may delay deliveries of Airbus jets built in Europe should the trade conflict persist, underscoring the ripple effects tariffs could have across the global aviation market.
