By David Shepardson
WASHINGTON, July 9 (Reuters) – The U.S. Commerce Department said on Thursday it had completed a probe into imported commercial aircraft, jet engines and parts and found foreign goods raise U.S. national security concerns but the Trump administration is not seeking new tariffs.
Under heavy lobbying by the U.S. aviation sector, the Trump administration agreed to exempt airplanes and parts from tariffs as part of trade deals after briefly imposing tariffs on aviation last year.
The report, which stems from a probe opened last year, found the U.S. aircraft industry “is too reliant on foreign supply chains, raising national security concerns,” and cited risks from imported aircraft parts because of quality control and counterfeiting.
But U.S. Commerce Secretary Howard Lutnick recommended that no immediate tariffs be imposed, the White House said.
President Donald Trump directed negotiations with trading partners to address the impact of foreign imports on the health of the U.S. commercial aerospace industry and said he could take action without agreements within six months.
“Competitive pressure from lower-cost foreign suppliers also forces United States firms to keep wages stagnant or limit hiring, making aircraft manufacturing jobs less appealing compared to other industries,” the report said.
Airplanes and parts have enjoyed a tariff-free regime under the 1979 Civil Aircraft Agreement, in which the U.S. sector enjoyed a $75 billion annual trade surplus.
Trump has made Boeing airplane sales a key component of trade deals and often bragged about how many planes he has helped sell to foreign countries.
Delta Air Lines and major trade groups warned last year of airplane tariffs’ impact on ticket prices, aviation safety and supply chains.
Airbus Americas also warned last year that tariffs would put U.S. planemaking at risk.
(Reporting by David Shepardson and Ryan Patrick Jones; Writing by Christian Martinez; Editing by David Ljunggren and Alistair Bell)
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