US government opts for negotiation over immediate aircraft tariffs following Trump directive

The US has decided against slapping immediate tariffs on aircraft and parts, choosing instead to negotiate with trading partners.

The zero-percent playbook

In September 2025, a White House executive order formally established zero percent reciprocal tariff rates for aircraft and aircraft parts. The move effectively reinstated terms similar to those under the 1979 Civil Aircraft Agreement, a decades-old framework that kept aerospace trade flowing relatively freely between major manufacturing nations.

The US-EU framework agreement reinforced this approach. It set a 15% tariff ceiling on most EU exports while carving out a complete exemption for aircraft and parts. In practice, that means a zero-for-zero framework where neither side taxes the other’s planes or components.

Similar exemptions have shown up in trade deals with the UK and Indonesia. Airlines for America, the major US airline trade group, has publicly backed this approach. Companies like Delta and even Airbus, the European rival to Boeing, have expressed support for maintaining tariff-free treatment.

The stick behind the carrot

On January 29, 2026, Trump threatened 50% tariffs on Canadian aircraft imports amid certification disputes. Canada’s situation illustrates the volatility lurking beneath the surface. Bombardier, the Canadian aerospace manufacturer, and numerous smaller parts suppliers would face enormous cost pressures from such a tariff.

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For Boeing specifically, the tariff exemption removes a major overhang. The company’s stock has been sensitive to trade policy signals throughout 2025, and the confirmation that its products won’t face retaliatory tariffs from major trading partners provides a degree of stability. Airbus benefits similarly, though European investors have to weigh the 15% ceiling on other EU exports as a separate concern.

A single commercial aircraft contains parts from dozens of countries. Taxing those components would raise costs for US airlines and ultimately for consumers.

If the Canadian tariff threat escalates into actual policy, it would signal a shift toward a more aggressive stance even within protected sectors.

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