The European aerospace sector is preparing for significant trade headwinds as Airbus chief executive Guillaume Faury signals mounting concerns over potential US tariffs under a second Trump presidency. The industry anticipates “pronounced” and “very strong” import duties, though the exact scope remains uncertain.
Faury, speaking in his role as president of the French Aerospace Industries Association (Gifas), urged European governments to take proactive measures against US protectionism. His warnings come at a particularly challenging time for the sector, which continues to grapple with supply chain disruptions from the pandemic era.
The timing could not be more precarious for Airbus, Europe’s largest aerospace manufacturer, which maintains substantial operations across the continent including 10,000 UK employees. The British workforce, primarily based at the Broughton facility in North Wales, specialises in wing production for the entire Airbus fleet.
Despite robust demand for commercial aircraft and increased defence spending, the industry faces mounting pressures from global political tensions and intensifying international competition. Faury highlighted concerning trends in defence sector financing, noting that ESG-focused investors are increasingly avoiding the industry despite heightened security concerns following the Ukraine conflict.
The spectre of trade disputes looms large over transatlantic aerospace relations. Previous tensions between Airbus and Boeing over state aid led to widespread tariffs affecting various sectors until President Biden brokered peace in 2021. While Airbus has established manufacturing facilities in Mobile, Alabama as a strategic hedge, uncertainty persists about the potential scale of Trump’s proposed tariffs, which could range from 10 to 20 percent on foreign goods.
British ministers remain cautious about the potential fallout, particularly given the UK’s complex position between US and EU trade relationships. Business Secretary Jonathan Reynolds emphasised the need to carefully balance any US trade demands against maintaining positive European relations, highlighting the delicate diplomatic challenge ahead for British trade policy.
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