Airbus CEO Calls for EU Retaliation if U.S. Tariffs Remain

Airbus CEO Guillaume Faury has stated that if current negotiations between Europe and the United States do not result in the cancellation of recent tariffs imposed on the aerospace industry, Europe should implement retaliatory measures against U.S. aircraft manufacturers.

Speaking in Paris, Faury emphasized the importance of returning to the framework of the 1979 Civil Aircraft Trade Agreement, which established a tax-free regime for the aviation industry. This agreement allowed the industry to enjoy an annual trade surplus of $750 billion. However, the tariff policies implemented by the Trump administration have ended this decades-long tax exemption.

Faury highlighted that a return to the 1979 agreement would benefit both the U.S. and European aviation industries. While he did not explicitly name Boeing, it is clear that the company, as the leading U.S. exporter in this sector, would face significant impacts if the EU decides to retaliate against U.S. aircraft manufacturers.

Currently, the U.S. has imposed a 10% tariff on imports from dozens of EU countries to pressure them into reaching a more favorable trade agreement. Airbus has been under pressure as a result, while its competitor Boeing has so far been spared from potential EU tariffs due to the lack of EU retaliation.

Sources close to the matter have indicated that the EU plans to impose tariffs on approximately $1.13 trillion worth of U.S. goods if the ongoing trade negotiations do not yield satisfactory results. The aviation industry is already grappling with the complexities and increased costs brought about by the new U.S. tariff policies, which have affected the entire aerospace supply chain.

Faury noted that Airbus, being part of the U.S. civil aviation industry, is also affected by these tariffs, which have introduced uncertainty and hindered investment in the sector. He called for simplification of European regulatory frameworks to foster innovation, investment, and competitiveness.

In light of the potential strain on the long-standing U.S.-EU alliance, Faury urged European countries to increase their procurement of locally produced weapons. He also advocated for more pan-European cooperation projects, such as the proposed merger of satellite businesses between Airbus, Italy's Leonardo SpA, and France's Thales SA.

Faury acknowledged that sovereignty issues have added complexity to the negotiations but expressed confidence that agreements will be reached, although he did not provide a specific timeline.