from /Airline Economics/, a few minutes ago: "The effects of tariffs on aircraft manufacturers have been prevalent in recent months, particularly following the US government's introduction of reciprocal tariffs economies worldwide in April, including the EU. These measures have affected Airbus deliveries.
According to research by Airline Economics, Delta Air Lines earlier this year took delivery of Airbus aircraft by flying them via Asia, in what appeared to be a strategic move to avoid US tariffs. One A330-900 departed from Toulouse on May 11, but instead of flying directly to the US, it landed at Tokyo’s Narita Airport the following day. A source familiar with the matter confirmed to Airline Economics that this routing was part of a deliberate strategy to bypass tariffs. The approach exploited a loophole, allowing aircraft to avoid tariffs if they operate international routes into and out of the US. This tactic was previously employed during the Trump administration and appears to be resurfacing in response to the current trade environment." ---------------------------------------- *From: *Bob Robeson via Mifnet <mifnet@lists.mifnet.com> *To: *Tom Ronell via Mifnet <mifnet@lists.mifnet.com> *CC: *Bob Robeson <v1gon...@verizon.net> *Date: *Jul 15, 2025 18:20:09 *Subject: *[Mifnet 🛰 73094] Re: Delta's canny move > Tom, > > Further to my earlier reply to your question, as I lay abed last night my > fevered mind got to wondering if the US had imposed countervailing duties on > Airbus imports as a result of the dispute over European subsidies. At the > time I moved from that world to the much more interesting field of aviation > safety, we had not done so. In fact, we had not opened a formal investigation > of Airbus subsidies under the statutory authorities governing unfair > international trade practices, so I was no longer following it very closely. > But my curiosity was piqued so this morning I did a bit of digging. The US > did take a complaint to the WTO concerning subsidies to Airbus (which was > countered by an EU complaint against the US alleging subsidies to Boeing). As > a result of that process the WTO authorized the US to impose tariffs against > European products. Note that under this type of complaint, the tariffs don't > need to be against the product at issue, as the objective from the WTO point > of view is to restore the balance of trade concessions generally, which in > this case could (and did) include EU products other than aircraft. So, in > 2019, the US did in fact impose a 10% ad valorem countervailing tariff that > included not only new aircraft over 30,000kg (empty) from France, Germany, > the UK and Spain, but also other tariffs on things like whiskey (oh, the > horror of it all!). However, after further negotiations between the U.S. and > Europeans, these tariffs were suspended in July 2021 for a period of 5 years, > so at present there appears again to be no tariff on aircraft from the EU or > UK. > > There is a bit more to the story. The tariffs appear to cover only complete > aircraft, not parts, components etc., etc. etc. I haven't read an explanation > for that, but personally I think one could make a pretty good safety case for > leaving all of that out of the mix. Anyhow, that answers any lingering > question from Mssrs Keady and Borfitz: relax, your engines are clear of all > this. For those Mifnetters with severe insomnia, I'm attaching links to a bit > of reading for your evening pleasure.  > > Bob Robeson > > This is a page from the USTR website links to documents pertaining to this > issue. The notice of determination published on October 9, 2019, has all the > information as to tariff rates, what products are covered and from which > countries. Skip to Annex B of that notice for detailed product descriptions. > The July 9, 2021 notice announced the 5-year suspension of countermeasures > i.e., tariffs. > > ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-large-civil-aircraft[https://ustr.gov/issue-areas/enforcement/section-301-investigations/section-301-large-civil-aircraft] > > A short note on section 301 by the law firm Covington & Burling > > www.cov.com/en/news-and-insights/insights/2024/12/section-301-tariffs-and-proceedings-recent-and-potential-developments[https://www.cov.com/en/news-and-insights/insights/2024/12/section-301-tariffs-and-proceedings-recent-and-potential-developments] > > A nice analysis by the Kiel Institute in 2019 gives one view from Germany > about how this played out at the time. Bottom line, in developing its > retaliation list, one could say that the US may have used a kitchen knife > instead of a scalpel, but it didn't use a chainsaw either. (Although, as > someone who in an earlier life worked on developing retaliation lists against > the then European Communities, I'd say a scalpel is actually pretty close to > the mark here). > > www.ifw-kiel.de/publications/kiel-focus/low-countervailing-tariffs-a-warning-to-europe-in-airbus-boeing-conflict/[https://www.ifw-kiel.de/publications/kiel-focus/low-countervailing-tariffs-a-warning-to-europe-in-airbus-boeing-conflict/] > > > > On Monday, July 14, 2025 at 10:00:56 PM EDT, Tom Ronell via Mifnet > <mifnet@lists.mifnet.com> wrote: > > > > If there are no tariffs on aircraft, then why is Delta taking Airbus > deliveries to Tokyo and putting them into service from there, in order to > avoid tariffs by having the aircraft enter USA as used aircraft, and > Bloomberg's reporting "...as it seeks to overcome a shortage and avoid > aircraft import tariffs."? Seems like a lot to do for no reason. > > TR > > ---------------------------------------- > > *From: *Bob Robeson via Mifnet <mifnet@lists.mifnet.com> > *To: *Mike Borfitz via Mifnet <mifnet@lists.mifnet.com> > *CC: *Bob Robeson <v1gon...@verizon.net> > *Date: *Jul 15, 2025 02:13:34 > *Subject: *[Mifnet 🛰 73084] Re: Delta's canny move > >> Mike & Jack, >> >> Don't worry about tariffs. The Agreement on Trade in Civil Aircraft >> eliminated customs duties (i.e., tariffs) on trade in civil aircraft and >> parts among the signatories to the agreement. See Article 2 and the tariff >> schedules at the end of the agreement. Now, I confess that I'm way out of >> date as to the effect on this of Mr. Trump's unhinged dabbling in the world >> of tariffs, but it looks like the Aerospace Industries Association is >> worried about it. Finally, the item from the US Trade Representative >> contains a list of signatories to the agreement (apparently USTR hasn't >> noticed that the UK is no longer part of the EU, but since the EU members >> all signed in their own right that isn't relevant for this discussion, but I >> just couldn't resist a little snark). >> >> Cheers, Gents >> Bob Robeson >> >> gatt-disputes.wto.org/sites/default/files/documents/6%20Full%20TR%20Codes/Instrument155-TCA.pdf[https://gatt-disputes.wto.org/sites/default/files/documents/6%20Full%20TR%20Codes/Instrument155-TCA.pdf] >> >> www.aia-aerospace.org/wp-content/uploads/AIA-Agreement-on-Trade-in-Civil-Aircraft.pdf[https://www.aia-aerospace.org/wp-content/uploads/AIA-Agreement-on-Trade-in-Civil-Aircraft.pdf] >> >> ustr.gov/issue-areas/industry-manufacturing/industry-initiatives/aircraft[https://ustr.gov/issue-areas/industry-manufacturing/industry-initiatives/aircraft] >> >> On Monday, July 14, 2025 at 03:37:49 PM EDT, Mike Borfitz via Mifnet >> <mifnet@lists.mifnet.com> wrote: >> >> >> Even better: They're Pratt engines, so we're talking Connecticut to Europe >> then back to Atlanta or wherever, and there are duties?  Now THAT is odd. I >> wonder if Pratt has final assembly in Europe? >> >> On Mon, Jul 14, 2025 at 1:15 PM Jack Keady via Mifnet >> <mifnet@lists.mifnet.com> wrote: >>> keady - doesn't Airbus alreadyhave a factory in the US? I'm thinking they >>> could expand this to making it a final assembly or whatevr, couldn't they? >>> >>> >>> *Delta strips engines off new Airbus jets to overcome US shortage* >>> >>> >>> Delta Air Lines Inc. has been cannibalizing new Airbus SE jets in Europe by >>> stripping off their engines and using them to get grounded planes in the US >>> back into service, as it seeks to overcome a shortage and avoid aircraft >>> import tariffs. The airline has been taking US-made Pratt & Whitney engines >>> off new European-built A321neos and shipping them back to the States >>> without any duties, according to people familiar with the matter. The >>> engine-less aircraft, meanwhile, remain in Europe. _*Mary Schlangenstein & >>> Siddharth >>> Philip/Bloomberg[https://ytezitcab.cc.rs6.net/tn.jsp?f=001A1vMJj7vzvNdsn3cozz_BgdlqnVRZZ7l2_-2nWC0QAqrrORCQSJkzWHqF395_x5nK1T7KdMa24CSr6ZbVHf9zRpFKBsoqylKK6uStf65LTKevufNO5RMvqAq5M--0UmIqdXwa2KBGQTX1n2MBb-CP_s60u1TYhL6D71MvRc2KjxHQckY60-qbnRI-EaQcmuvbuqTb3DSgNQWiJu9kvhtfRZj1LYc8NGkFRdKiUYEisu4DMocN9anJmTiX8-0DTGaUKCAbHdF7nfkKKR0B1VlZA==&c=i_NHu3hV_3gaspqLR9IpwHlKyYTj3LWb24vdlkhdip-qXh6BRluLNQ==&ch=ctZw5yB4ODurZB2FTljnpx6RHIiFSfJSGg9UHmSUE6AJBc1tpz6IyQ==]*_ >>> >>> >>> -------------------------------------------------------------------------- >>> Revised: 20250507 >>> >>> You are receiving The Mifnet because you requested to join this list. >>> >>> The Mifnet is largely a labor of love, however the infrastructure isn't >>> exactly cost-free. If you'd care to make a small contribution to the >>> effort, please know that it would be greatly appreciated: >>> https://wardell.us/url/mifbit >>> >>> All posts sent to the list should abide by these policies: >>> >>> 1) List members acknowledge that participation in Mifnet is a >>> privilege--not a right. >>> 2) Posts are always off the record, absent specific permission from the >>> author. >>> 3) The tone of discussions is collegial. >>> 4) Posts are expected to be in reasonably good taste. >>> 5) We discuss ideas and not personalities, and we don't speak ill of other >>> Mifnet members. >>> >>> * The Mifnet WEB SITE is: >>>  https://www.mifnet.com/ >>> >>> * To UNSUBSCRIBE from this list at any time please visit: >>>  https://lists.mifnet.com/ >>>  OR: SEND THIS MESSAGE via email: >>> mifnet-requ...@lists.mifnet.com?subject=leave[http://mifnet-requ...@lists.mifnet.com?subject=leave] >>> >>> * Send Mifnet mailing list POSTS/SUBMISSIONS to: >>>  mifnet@lists.mifnet.com >>> >>> * You may reach the person managing The Mifnet at: >>>  mifnet-ow...@lists.mifnet.com >>> >>> * Please consider the DIGEST version of The Mifnet, which consolidates all >>> list traffic into 1-3 >>>  messages daily. See instructions at: >>>  https://lists.mifnet.com/ >>> >>> * Manage your personal Mifnet SUBSCRIPTION at: >>>  https://lists.mifnet.com/ >>> >>> * For a list of all available Mifnet commands, SEND THIS MESSAGE via email: >>>  >>> mifnet-requ...@lists.mifnet.com?subject=help[http://mifnet-requ...@lists.mifnet.com?subject=help] >>> >>> * View The Mifnet LIST POLICIES and PRIVACY POLICY at: >>>  https://mifnet.com/index.php/policies >>> >>> * View instructions for Mifnet DELIVERY PROBLEMS at: >>>  https://mifnet.com/index.php/delivery-problems >>> >>> * View The Mifnet LIST ARCHIVE at: >>>  https://lists.mifnet.com/hyperkitty/list/mifnet@lists.mifnet.com/ >> >> >> -- >> Mike Borfitz, DER >> >> Cell     206-714-8797 >> e-Mail:   m...@borfitz.com >> Kilroy Aviation LLC >> Website: WWW.FAAODA.COM[http://www.faaoda.com/]  >> >> Kilroy is available for aviation regulatory and safety issues >> - Type & Production Certification, Continued Operational Safety >> - International validation & safety matters >> - Program & system management >> - FAA STC ODA >> -------------------------------------------------------------------------- >> Revised: 20250507 >> >> You are receiving The Mifnet because you requested to join this list. >> >> The Mifnet is largely a labor of love, however the infrastructure isn't >> exactly cost-free. If you'd care to make a small contribution to the effort, >> please know that it would be greatly appreciated: >> https://wardell.us/url/mifbit >> >> All posts sent to the list should abide by these policies: >> >> 1) List members acknowledge that participation in Mifnet is a privilege--not >> a right. >> 2) Posts are always off the record, absent specific permission from the >> author. >> 3) The tone of discussions is collegial. >> 4) Posts are expected to be in reasonably good taste. >> 5) We discuss ideas and not personalities, and we don't speak ill of other >> Mifnet members. >> >> * The Mifnet WEB SITE is: >>  https://www.mifnet.com/ >> >> * To UNSUBSCRIBE from this list at any time please visit: >>  https://lists.mifnet.com/ >>  OR: SEND THIS MESSAGE via email: >> mifnet-requ...@lists.mifnet.com?subject=leave >> >> * Send Mifnet mailing list POSTS/SUBMISSIONS to: >>  mifnet@lists.mifnet.com >> >> * You may reach the person managing The Mifnet at: >>  mifnet-ow...@lists.mifnet.com >> >> * Please consider the DIGEST version of The Mifnet, which consolidates all >> list traffic into 1-3 >>  messages daily. 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