On July 27, 2025, the U.S. and EU reached a trade agreement. As part of the agreement, the U.S. will impose a 15 percent tariff “on the vast majority of EU exports.” President Trump signed an Executive Order on July 31 providing that the tariffs will go into effect on August 7.
However, a key commitment of the agreement includes an exemption for all aircraft and aircraft parts, such as engines, landing gear, and seats. The U.S. and EU agreed to zero-for-zero tariffs for aircraft and such parts. This latest agreement ends a 10% tariff on aircraft and aviation parts, which went into effect earlier this year.
Aircraft groups on both sides of the Atlantic have praised the zero-tariffs agreement. In the U.S., Airlines for America stated that the “zero-for-zero tariff regime will grow jobs, strengthen our economic security and provide a framework for U.S. leadership in manufacturing and safety.” Similarly, Delta Airlines commented that the agreement “is welcome news given it preserves a zero-tariff environment on aircraft and component parts, a reciprocal policy that’s been in place for over 40 years.” On the other side of the Atlantic, France’s Airbus commented that a “stable and predictable trade environment is essential for our highly integrated global aerospace industry.”
While this is positive news for the aerospace industry in Europe, aircraft manufacturers in Brazil, for example, still face a 10% tariff and continue to advocate for a zero-tariff rule for the global aerospace industry.
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