Trump, Von der Leyen Agree On Zero-For-Zero On Strategic Products

The aviation industry caught a big break in the historic trade agreement between the U.S. and the European Union when President Donald Trump and EU Commission President Ursula von der Leyen met in Scotland on July 27.

The two leaders agreed on a 15% tariff on European goods sent to the U.S., but some strategic products would be omitted from any tariffs on both sides including aircraft and aircraft component parts as well as certain chemicals, generics, semiconductor and agricultural equipment, natural resources, and raw materials.

Airlines for America ((A4A), representing the largest carriers in the U.S. applauded the deal saying “We are grateful that both the Trump Administration and the leadership of the European Commission understand the critical role aviation plays in facilitating global commerce and connectivity. As a result, they have agreed to zero-for-zero tariffs for all aircraft and component parts.

“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.”

The industry had been hoping for such a deal because of its global nature and influence on so many activities.

President von der Leyen said, “Today with this deal, we are creating more predictability for our businesses. In these turbulent times, this is necessary for our companies to be able to plan and invest. We are ensuring immediate tariff relief. This will have a clear impact on the bottom lines of our companies.”

As with many economic framework agreements, there are still some details to iron out and work to be done before it goes into effect.

In addition to the tariff tradeoff, the overall agreement calls for the EU to invest $600 billion in U.S. industries, purchase $750 billion worth of American energy, and to open EU Markets to U.S. goods.

FMI:  www.airlines.org/