U.S Announces Tariffs on Airbus Planes Entering the US

If you’re flying on a predominately airbus airline in the US, don’t be surprised to see the price of your ticket go up. This is due to a new tariff on airbus planes being delivered to US airlines, which takes effect later this month.
While this might pressure airbus to build more planes at their Mobile, AL plant, it could also cause the ticket prices to go up.
Let’s keep this civil and have a mature discussion.

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This is bit of a controversial topic. I doubt it will last long.

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It should be ok as long as everyone is mature and doesn’t go biased in their responses.

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no more low fares for Frontier and Spirit:(
They’ll be the ones hit hardest…

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Hmm, so all European-made Aircraft will be issued tariffs? Man, let’s see what happens next!

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Only airbus planes

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I see, thanks for pointing that out!

Could this possibly be a move by the US government as an effect to maybe shield Boeing in a way? Who knows, just listing a thought 🧐

Let’s see how it goes.

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Not good at all. There is a lot to disagree here, and the inequality between different aircraft manufacturers is becoming worse. 😕

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This is the idea, that’s the point of tariffs, and they are usually effective to some extent,I mean look what happened with the A220

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Not that controversial at all. The US taxes goods that are imported into the US whether they are aircraft or barrels of oil. The same goes for the EU, as they tax American imports before they enter foreign countries. Why do you think German cars cost more in the US than Germany? An import tax is excised on them, just like any other import.

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It’s an American company, I’m not going to get into the politics out this too much, but really any good administration should do whatever they can (to an extent) to help the home company’s, our current administration has been especially active with them for better or worse, but this has been a proven and effective strategy to help domestic companies for as long as the modern economic system has been a thing…

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But that’s the whole point.

The US filed a suit in the WTO for Europeans supporting their manufacturers while simultaneously providing indirect subsidies to its own.

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Interesting. I think it would be pretty easy for Airbus to move a lot of production into the US since the factory in Alabama specializes in the A320 and A220 families, which, I would guess make up about 80% of the country’s combined Airbus fleet. A good portion of those are already being made at that plant for US customers, so I don’t see prices going up too much, especially with airlines like Frontier and Spirit which only use A32Xs.

This is partially because the EU gave exorbitant amounts of subsidies to Airbus to finance the production of their A350 etc. They have been going at in court for a while.

It’s tit for tat. I partially agree with the ruling, besides Airbus can just expand US manufacturing. The UK and it’s allies is negotiating with the US so hopefully something can be sorted out to mitigate any issues that later arise

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Well also most airlines already have much of the fleet they will have for the foreseeable future, and this doesn’t change anything for aircraft already built…

I’m talking about the aircraft on order. Although there aren’t a ton, a good portion of them are A320Xs and A220s, which can easily be built in Mobile.

Maybe IF should follow suit and impose a 10% reduction on XP for all flights with an Airbus.

Joking aside this is a great discussion and should the attention it deserves.

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Here’s what’s so interesting about this story:

The WTO ruled that the US could impose $7.5 billion in retaliatory tariffs in response to illegal EU subsidies to Airbus that hurt its American rival Boeing. This is a ruling of a 15 year old case.

The European Union already announced that if those tariffs will be imposed, they’ll impose countermeasures targeting the US.

In addition to that, another case may allow the EU to impose its own tariffs. The WTO has already found Boeing received billions of dollars of illegal subsidies and trade arbitrators are expected later this year to allow the EU to impose its own retaliatory tariffs on US imports.

Or in other words: The USA is accusing the EU of something they’re doing as well. And when the US will impose tariffs, the EU will do so as well.

Here’s the problem with tariffs: Once country 1 imposes tariffs on country 2, country 2 will impose tariffs in country 1. In the end, it will help nobody, prices climb, relations between countries (and in this case between allies) are damaged and the consumer and the employees of the affected companies are the ones to pay the price for it.

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Well clearly Europe could put a tax on Boeing planes technically right?