U.S. Investigation Could Lead to Extraordinary Aircraft Parts Tariffs

This week, the U.S. will start a process that could impose restrictions on the U.S. import of foreign aircraft and their parts; this could affect Airbus, Embraer and Bombardier aircraft and it could affect non-U.S. components from well-known companies like BAE Systems, Safran, Thales, etc. You have an opportunity to do something about it.

The Federal Register announcement starting the process is expected to be published on May 13th.

Section 232 Investigation

The United States is opening a “section 232 investigation” into the commercial aviation market (the formal scope is “Commercial Aircraft and Jet Engines and Parts for Commercial Aircraft and
Jet Engines”). This is a process that could authorize the President to take extraordinary action to affect trade in civil aviation (including special aircraft parts tariffs). An announcement of this investigation is expected to be published in the Federal Register on May 13. Industry will likely only have 21 days to file comments.

When a “section 232 investigation” is opened, the Commerce Department has 270 days to prepare a report advising the President on whether the targeted product is being imported “in such quantities or under such circumstances as to threaten to impair the national security” of the United States.  Commerce is expected to provide recommendations based on its findings.

Past section 232 investigations into steel and aluminum led to the 25% tariffs on these materials and certain articles made from steel and aluminum.  The tariffs on automobiles and certain automotive parts were also a response to a section 232 investigation initiated in President Trump’s first term as President.

There are a number of tools available to the President if a section 232 investigation suggests a threat to national security.  The President can enter into negotiations to secure supplies necessary to the United States, the President can also establish tariffs intended to protect domestic market from non-US competition.  The President can also establish other import limits (like embargoes) designed to protect the domestic market. 

There are a number of elements that the United States must take into account under Section 232.  These include:

• domestic production needed for projected national defense requirements
• capacity of domestic industries to meet such requirements
• existing and anticipated availabilities of the human resources, products, raw materials, and other supplies and services essential to the national defense
• the requirements of growth of such industries and such supplies and services including the investment, exploration, and development necessary to assure such growth
• the importation of goods in terms of their quantities, availabilities, character, and use as those affect such industries and the capacity of the United States to meet national security requirements
• the impact of foreign competition on the economic welfare of individual domestic industries
• any substantial unemployment, decrease in revenues of government, loss of skills or investment, or other serious effects resulting from the displacement of any domestic products by excessive imports

If you think that restriction on the import of non-US aircraft and aircraft goods could be a problem for your business, or if you support such a restriction, then you should file comments to the docket at www.regulations.gov.  The regulations.gov ID for this investigation is BIS-2025-0027 (this link will not be live until the Federal Register publication). Please refer to XRIN 0694-XC127 in all comments.