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Brinks Report > Blog > Business > Trump Tariff Policy Could Ground $40M Jets, Disrupt U.S. Airline Deals
Business

Trump Tariff Policy Could Ground $40M Jets, Disrupt U.S. Airline Deals

Dolon Mondal
Last updated: April 11, 2025 11:00 am
Dolon Mondal
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Trump Tariff Policy Sparks Aerospace Chaos, Threatens Delta’s Jet Deal

The Trump tariff policy has once again put global industries on edge—this time, the aerospace sector is feeling the heat. A mix of new import tariffs and political uncertainty is now delaying aircraft deliveries and threatening multimillion-dollar deals.

Among the most high-profile cases is Delta Air Lines’ purchase of the Airbus A220. Though the aircraft was ordered years ago and assembled in Montreal, it might now face a 25% import tariff when it lands on U.S. soil in June 2025.

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Delta vs. Duties

Delta CEO Ed Bastian has made it clear: the airline will not pay the tariffs. This stance has left Airbus scrambling, as both companies face the possibility of delivery deferrals or even order cancellations.

If the tariffs hold, Delta would face an extra $40.5 million per plane. That’s a heavy burden—even for a major U.S. carrier. The Airbus A220, known for its fuel efficiency and comfort, is key to Delta’s strategy for domestic travel.

But thanks to the Trump tariff policy, the future of these jets is now uncertain.

Also Read: How Apple Is Beating Trump’s Tariffs: 600 Tonnes of iPhones Airlifted from India!

A History of Duty-Free Skies

Traditionally, the aerospace industry has operated under zero-duty treaties, like the 1979 U.S.-Canada agreement. These rules allowed smooth cross-border trade of aircraft and engines—until recently.

The only major exception came during the 2020–2021 trade war, when the U.S. and EU imposed tariffs related to Airbus and Boeing subsidies. But even then, those tensions were resolved quickly.

Now, under the U.S.-Mexico-Canada Agreement (USMCA), Canadian aerospace companies must prove compliance through new documentation and regulations. This paperwork maze has caused delays, particularly for engine manufacturer RTX, which has postponed some shipments to verify compliance.

Global Fallout

The consequences of this new trade drama go beyond Delta. The entire aerospace industry is being rocked by policy confusion.

Airbus CEO Guillaume Faury recently warned that if tariffs make U.S. sales unviable, the company could prioritize non-U.S. customers. With global travel demand softening, Airbus and other manufacturers are in no mood to play a waiting game.

At the same time, the U.S. Treasury’s mixed signals have only made matters worse. A recent announcement hinted at a 10% tariff on Canadian goods, before President Trump introduced a 90-day pause. But for airlines like Delta, that pause isn’t reassurance—it’s just more uncertainty.

Also Read: Gold Price Record High as Tariffs Hit 145% — Is the World Seeking Refuge from a Financial Storm?

Political Pressure Builds

Delta’s leadership is calling for a fast resolution. Bastian described the situation as “unprecedented uncertainty” and has urged the U.S. government to clarify the rules before deliveries are due.

If no resolution comes soon, more deliveries could be deferred or canceled. That spells trouble not just for airlines, but for jobs and businesses across North America’s aerospace supply chain.

As the June 2025 deadline looms, all eyes are on Washington.

Also Read: Shocking Market Crash! US-China Trade War Triggers Massive Asian Stock Sell-Off — Nikkei Plunges 5.6%!

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TAGGED:Aerospace IndustryAirbusaircraft tariffsaviation newsDelta Air Linesinternational tradeRTX enginesTrump tariff policyU.S.-Canada tradeUSMCA
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