Washington, DC, 12 April - The uncertainty surrounding President Donald Trump’s tariff policies has cast a shadow over the aerospace industry, threatening to disrupt aircraft deliveries and strain an already fragile global supply chain. In recent months, the White House’s erratic approach to trade—marked by abrupt announcements, reversals, and conflicting statements—has left manufacturers, airlines, and suppliers grappling with unprecedented challenges. The aerospace sector, which relies on long-term planning and intricate cross-border logistics, is particularly vulnerable to this unpredictability, with potential delays looming for critical deliveries, including those to major U.S. carriers like Delta Air Lines.
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At the heart of the issue is a series of tariff threats and policy shifts that have targeted key trading partners, notably Canada and Mexico, alongside broader proposals affecting global imports. For instance, a proposed 25% tariff on goods from Canada and Mexico raised alarms earlier this year, only to be followed by a 30-day delay and subsequent exemptions for products compliant with the U.S.-Mexico-Canada Agreement (USMCA). More recently, a 90-day pause on many tariffs was announced, but contradictory remarks from administration officials, including a suggestion of a 10% tariff on Canada, sowed further confusion before clarifications were issued. This back-and-forth has disrupted the flow of goods, with cars, industrial equipment, and now aircraft components facing delays at ports, rail yards, and warehouses.
The aerospace industry’s complexity amplifies the impact of this uncertainty. Aircraft like the Airbus A220, assembled at a Canadian plant in Mirabel, Quebec, are built with parts sourced globally, and their delivery schedules are planned years in advance. Delta Air Lines, expecting 43 Airbus aircraft by the end of 2024, including A220 jets, now faces ambiguity over whether these planes will incur duties. A single A220, valued at approximately $40.5 million, could see costs spike significantly if tariffs are applied to non-U.S. components, potentially forcing airlines to absorb expenses or defer deliveries. Delta’s CEO, Ed Bastian, has publicly stated the airline will not pay tariffs, hinting at possible delays as a cost-control measure, which could ripple through its operational plans and affect travelers.
Delta Halts Airbus A350-1000 Orders as Trump Tariffs Threaten Higher Costs#AviationNews @Delta Air Lines has halted new #Airbus #A350 -1000 orders due to tariffs imposed by the #Trump administration, which could increase aircraft costs by 10-20%. The decision, announced during… pic.twitter.com/UO2C8sk0lx
— Aero News Journal-Daily Aviation News (@FlyingFreak73) April 11, 2025
Suppliers are equally strained. Companies like RTX, which produces engines in Canada, have already experienced shipment delays while scrambling to secure USMCA compliance paperwork—a process complicated by the shifting policy landscape. Airbus CEO Guillaume Faury warned earlier this year that the company might prioritize non-U.S. customers if tariffs disrupt imports, a move that could further complicate deliveries to American airlines. The broader supply chain, already battered by post-pandemic shortages of parts and labor, is under additional pressure, with manufacturers facing tough choices about passing costs to customers or absorbing losses. Historically, aerospace has enjoyed relative stability under agreements like a 1979 treaty ensuring duty-free trade between the U.S. and Canada. However, the current tariff volatility threatens to upend this framework, reminiscent of a brief 2020-2021 tariff dispute over Airbus and Boeing subsidies. For now, the industry remains in limbo, with a June delivery of a Delta-bound A220 hanging in the balance, symbolizing the broader uncertainty. As the administration’s trade strategy continues to evolve unpredictably, the risk of delayed aircraft deliveries—and their economic fallout—looms large, potentially grounding growth in a sector critical to global connectivity.