White House Announces Tariff Rates on EU Aircraft Parts

Last night the White House issued a statement explaining the current status of the framework trade agreement between the European Union and the United States.

The framework trade agreement anticipates that aircraft and aircraft parts that are products of the EU will enjoy the “most-favored nation” (“MFN”) rates of duty. MFN status means that the country enjoys the “column one” duty rates (it does not mean that they get better rates, even if another country has a preferable rate under a separate agreement). This appears to imply that the additional chapter 99 tariffs will no longer apply to aircraft parts that are products of the EU, and we would go back to the pre-2025 tariff treatment for civil aircraft products of the EU.

There is a strong likelihood that aircraft parts that were not subject to duty-free treatment before 2025 (like certain fasteners used in aircraft) could remain subject to the additional chapter 99 tariffs (which are scheduled to remain at 15% for most products of the EU).

The statement explaining the framework trade agreement suggests that the new rates (including the new rate on aircraft parts) will go into effect on September 1.