Airbus plant in Alabama spared fallout from U.S. tariffs - A320 - A220
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WASHINGTON/LONDON (Reuters) - Alabama aerospace workers won an unexpected reprieve from escalating trade tensions on Wednesday when the United States spared an Airbus AIR.Pa plant in the state from the impact of tariffs against the European planemaker - at least for now.
While Airbus aircraft built in Europe will be hit with a tariff of 10% after the World Trade Organization allowed Washington to impose sanctions on EU goods, semi-finished fuselages and wings are exempted, an official list showed.
That means large parts shipped to the deep-sea Alabama port of Mobile from plants in Europe will not be hit by the duties, allowing Airbus to continue to supply U.S.-based airlines with a limited number of locally assembled aircraft.
Also spared by the decision to exempt imported aircraft parts were wings made in Northern Ireland for smaller Airbus A220 aircraft, which had been drawn into a separate row in 2017.
The planes are mainly built in Canada where they were originally designed by industrial group Bombardier (BBDb.TO) before Airbus bought the loss-making program last year.
But in August, Airbus also began building the planes in Mobile, adding plans for 400 jobs to 850 already in place.
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