EU considers tariffs on Boeing jets

[FRANKFURT] The European Union intends to propose tariffs on Boeing jets, as it prepares to retaliate further if trade talks with Washington fail, the Financial Times reported on Wednesday (May 7).

The European Commission, which oversees EU trade policy, plans to include civilian aircraft on a list of roughly US$100 billion in annual US imports to be targeted, the report said, citing two people familiar with the matter.

The measures, which would need to be approved by a weighted majority of member states, would only come into effect if the EU does not make sufficient progress in its talks with Washington to reduce US tariffs on European goods, the report added.

EU’s trade chief Maros Sefcovic said on Tuesday they were under no pressure to accept an unfair tariff deal with the United States.

Boeing and the European Commission did not immediately respond to Reuters’ requests for comments.

The EU faces US import tariffs of 25 per cent on its steel, aluminium and cars. It also has to contend with so-called “reciprocal” tariffs of 10 per cent for almost all other goods, including aircraft, which could rise to 20 per cent after President Donald Trump’s 90-day pause expires on July 8.

European carriers have hundreds of jets on order with the US planemaker, banking on a booming aerospace market, but potential levies could significantly increase prices of those aircraft.

Industry sources have said the EU is expected to ensure a level playing field on tariffs between Boeing and Europe’s Airbus by retaliating to Washington’s levies.

But unlike a previous tariff war involving aviation in 2020 and 2021, European and US aerospace companies have struck a common note in calling for all tariffs to be lifted. REUTERS