Tariff threats, China certification issues slow Airbus A220 sales
Trade Wars - Clouds over the A220
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May 23, 2019 - by Scott Hamilton for leehamnews.com
The trade wars President Donald Trump started with China, Canada and the European Union threw international relations and trade into turmoil. With Trump imposing tariffs on the two countries and the EU, retaliatory tariffs were imposed.
In the case of the EU, the Trump Administration proposes $11bn in tariffs on mostly non-aerospace goods because the World Trade Organization found Airbus hasn't cured illegal subsidies for the A380 and A350.
Airbus refuses to pay more than $600m in launch aid to Germany, arguing the WTO case was rendered moot after former CEO Tom Enders announced in February the program will be terminated in 2021. It argues the A350 launch aid commercial terms are inconsequential but will be cured.
These tariffs clearly affect the A320 family. It's unclear if wings for the A220, which are made in Northern Ireland—will be affected. Northern Ireland is part of the UK, which for the moment is part of the EU. After the UK leaves the EU, will tariffs still apply? This hasn't been answered.
The fuselage of the A220 is made in China. With the trade war between the US and China showing no signs of abating, will the A220 fuselage imported to the Mobile assembly line beginning next year be added to the list of tariffs?
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