Transatlantic Truce: Easing the Aerospace Tariff Turbulence

The United States and European Union have reached a provisional agreement to exempt aircraft from tariffs, a move designed to forestall potential disruptions in jet production and deliveries across these regions. Announced on Sunday, the framework exempts aerospace from the U.S.-imposed 15% tariff on most EU goods.

This development comes after intense lobbying efforts and follows a history of trade tensions centered on subsidies for Airbus and Boeing. Industry officials are optimistic about the relief from potential cost hikes and supply chain troubles, though questions remain about the deal's implementation and potential extensions.

The agreement reflects a significant moment of unity for the aerospace industry, previously marked by subsidy disputes. While the deal doesn't fully revert to the 1979 duty-free trade agreement, it focuses on the largest aerospace markets, amid broader concerns about U.S. trade policy impacts, including tensions with China and ongoing investigations into aircraft imports.

(With inputs from agencies.)