Introduction
France's aerospace industry has urged the European Commission to take assertive countermeasures against potential U.S. tariffs that threaten this crucial export sector.Context
The call comes from Gifas, the powerful aerospace lobby in France, which is currently led by Airbus. They emphasize the need for a balanced response to protect European businesses reliant on U.S. imports. The European Commission has previously indicated its readiness to implement countermeasures if negotiations with Washington do not yield results.Developments
Recently, President Donald Trump imposed tariffs on various U.S. imports, including a 20% tariff on EU goods and 10% on British imports, affecting companies like Rolls-Royce. The letter from Gifas reflects France's careful approach of addressing retaliation while minimizing adverse effects on domestic importers.France is pivotal in the global aerospace supply chain, housing Airbus, the largest aircraft manufacturer competing with Boeing in the $150 billion global market. Additionally, it plays a significant role in CFM International, the leading engine manufacturer co-owned by Safran and GE Aerospace, which serves both Airbus and Boeing.
Furthermore, Airbus relies heavily on Pratt & Whitney, a U.S. engine manufacturer owned by RTX. Aerospace stands as France's second-largest export sector, following the agri-food industry.
Analysts predict that U.S. airlines will bear increased costs due to tariffs imposed on Airbus jets and components essential for maintenance and operations. Initially, aerospace executives had downplayed concerns over direct tariffs on aircraft before these recent announcements targeting metals and automobiles.