Ministers urged to seek tariff exemption for aircraft and engines
Ministers have been urged to seek an exemption from US tariffs for civil aircraft and engine parts as the aerospace industry grapples with how to handle Donald Trump’s levies.
ADS, which represents members of the UK’s aerospace supply chain, warned disruption to an already-under-pressure supply chain would impact aircraft deliveries in the coming months.
Manufacturers and their airline customers are currently scrapping over who should front the added cost of Trump’s tariffs.
Airbus on Thursday said it would not cover the cost on its planes imported by US airlines. Ryanair, Europe’s largest airline and Boeing’s largest customer, has said it could delay deliveries from its US supplier if they become more expensive.
It is an unusual situation for the aerospace industry, which has operated free from trade barriers for the best part of the last 40 years.
ADS cautioned on Friday that broader international reactions to the US’s erratic trade policy could “add further uncertainty,” particularly for long-haul programs and cross-border component flows.
“That is why ADS is calling on the UK Government to seek exemptions for civil aircraft, engine parts and components as part of our trade negotiations to ensure the free movement of aerospace goods in line with the longstanding WTO Agreement on Trade in Civil Aircraft.”
Some 521 aircraft orders were placed in the first quarter of 2025, a 73 per cent year-on-year improvement, according to ADS data.
Aircraft deliveries also rose 20 per cent over the period, which run until the end of March, prior to Trump’s liberation day announcement.
The UK industry’s quarterly backlog stood at a record 15,954 as of 31 March, one per cent higher than last years and at a value of £254bn to the economy.
A government spokesperson said: “The US is an indispensable ally and talks on an economic deal between the US and the UK are ongoing – but we are not going to provide a running commentary on the details of live discussions or set any timelines because it is not in the national interest.
“We’ve been clear that a trade war is not in anyone’s interests and we will continue to take a calm and steady approach to talks and aim to find a resolution to help ease the pressure on UK businesses and consumers.”