Zero Tariffs for Aviation: Airlines See Big Gains With New Trade Agreements

After the U.S. reached a new trade deal with the European Union, it looks like airlines and manufacturers will be able to avoid paying tariffs on aircraft orders and parts.

The airline industry won a major concession in the Trump administration’s deal with the European Union: Aircraft and aircraft parts will be exempt from tariffs.

The deal, announced Sunday, was endorsed by the U.S. airline industry and removed some uncertainty for airlines and plane makers, which had been grappling with how to avoid tariffs on deliveries. Some had weighed delaying aircraft orders and others considered registering aircraft in other countries.

Aircraft and component parts fall under a “0 for 0” policy in the framework outlined in the EU trade deal, meaning that tariff-free trade would be maintained. A 1979 World Trade Organization agreement already exempted commercial aerospace from duties.

“We are grateful that both the Trump Administration