Airbus Chief Urges EU Tariffs on Boeing Exports Amid Trade Tensions


Paris, May 7 - In a bold escalation of the ongoing trade tensions between the United States and Europe, Airbus Chief Executive Guillaume Faury has urged the European Union to consider imposing tariffs on Boeing aircraft imports if negotiations to resolve U.S. President Donald Trump’s trade policies fail. This provocative statement, made during a press event hosted by the French aerospace industry association Gifas in Paris on May 6, 2025, underscores the deepening rift in the global aerospace sector, where Airbus and Boeing, the world’s two dominant planemakers, have long been embroiled in a complex web of competition and trade disputes. Faury’s call for reciprocal tariffs reflects both a strategic response to U.S. trade measures and a calculated effort to pressure Washington into reconsidering its tariff regime, which threatens to disrupt the delicate balance of the aerospace industry.

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The backdrop to Faury’s remarks is President Trump’s recent implementation of a 10% baseline tariff on goods from around the world, with a temporary suspension of a steeper 20% tariff on EU products pending ongoing negotiations. These tariffs, part of Trump’s broader trade war aimed at reducing the U.S. trade deficit, have sent shockwaves through the aerospace sector, which relies heavily on intricate global supply chains. Airbus, headquartered in Toulouse, France, but with significant operations in the United States, including an assembly plant in Mobile, Alabama, faces potential cost increases from tariffs on imported components. However, Faury argued that Boeing, as America’s largest exporter of goods, would likely suffer more acutely from retaliatory measures. Approximately 80% of Boeing’s multimillion-dollar aircraft are shipped to overseas customers, making it highly vulnerable to foreign tariffs that could inflate costs and erode its competitiveness in key markets like China, where Airbus has already gained significant ground.

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Faury’s proposal for tariffs on Boeing exports draws on historical precedent. During Trump’s first administration, the U.S. imposed tariffs of 10% to 15% on European aviation products in 2019 and 2020, following a World Trade Organization ruling that the EU had illegally subsidized Airbus. The WTO later found that the U.S. had similarly provided unlawful aid to Boeing, prompting the EU to secure approval for $4 billion in retaliatory tariffs on U.S. goods. This tit-for-tat dynamic, which Faury referenced as a model for potential EU action, underscores the cyclical nature of the Airbus-Boeing trade dispute, which has spanned decades and cost both sides billions in legal and economic battles. A five-year truce declared in 2021 had temporarily eased tensions, but Trump’s renewed tariff push has reignited fears of a broader trade war.

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The aerospace industry, already strained by post-pandemic supply chain disruptions and Boeing’s internal challenges, including safety issues and production delays, faces significant risks from escalating trade barriers. Tariffs on aircraft and components could drive up costs for airlines, potentially leading to higher fares for consumers. Delta Air Lines CEO Ed Bastian recently stated that the carrier would not absorb additional costs on Airbus jets due to tariffs, opting instead to delay deliveries. Similarly, Ryanair’s Michael O’Leary warned of deferring Boeing orders if prices rise. These reactions highlight the broader economic implications of a tariff war, which could stifle demand and disrupt the industry’s recovery. Faury emphasized that a trade war would be a “lose-lose” situation for the aerospace sector, yet he maintained that reciprocal tariffs could force higher-level negotiations to resolve the impasse. Airbus, which reported a 12% surge in net profit to €4.2 billion in 2024 and delivered 766 commercial jets compared to Boeing’s 348, appears better positioned to weather the storm. Its assembly lines in Mobile and Tianjin, China, provide some insulation from U.S. tariffs, while Boeing’s heavy reliance on exports leaves it exposed. As negotiations between the U.S. and EU continue, the aerospace industry braces for uncertainty, with Faury’s call for tariffs signaling a readiness to play hardball in a high-stakes game of trade and competition.

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