New Delhi, India – April 5, 2025 – President Donald Trump has put new taxes on goods coming into the United States from other countries. This move is making airplane makers and airlines very nervous. These new taxes, called tariffs, could make things more expensive and cause problems for how airplanes are made and sold.
On April 2nd, Donald Trump said he’s putting a basic 10% tax on most things coming into the US. But some countries will have to pay much higher taxes. For example, goods from China could have a 34% or even 54% tax. Goods from Europe will have a 20% tax, and goods from India will have a 26% tax. However, goods from Canada and Mexico might not have to pay these taxes, if they follow certain trade rules.
Experts are worried these taxes could lead to higher prices for everything, and even a fight between countries about trade. This could really hurt the airplane industry.
What Are Tariffs?
- Tariffs are taxes that a government puts on goods that are brought into the country from other countries. They make those goods more expensive.
Why Is This a Big Deal?
Michael Bruno, a business expert, says it’s hard to know exactly how these taxes will affect the airplane industry. Airplanes are made with parts from all over the world, so these taxes could make them much more expensive to build.
Kevin Michaels, another expert, says that free trade (trading without these extra taxes) has helped the US become very rich. He thinks these new taxes could cause problems for the US economy.
“It’s hard to believe these new rules, because they go against what we know is true,” Michaels says.
Airplane Makers and Their Problems
Michaels says that while some taxes on things like steel and aluminum might not be too bad, the taxes on goods from specific countries could cause big problems. Even though Canada might get a break on the taxes, Europe and other places won’t.
Airplanes are made with parts from many different countries. Airplane companies like Boeing and Airbus get parts from all over the world. It’s not easy to just move all that work to the US.
Jens Flottau, an expert in Europe, says that everyone there is surprised and worried about these new taxes. He thinks the US will end up hurting itself the most. And, there’s a real danger that countries will start fighting about trade.
Even though Airbus sells airplanes all over the world, these taxes will cause problems for them. But, smaller companies that make parts for airplanes will have the biggest problems.
Who Will Pay More?
It’s not clear who will pay for these new taxes. Airplane companies might have to pay more to make airplanes. But, in the end, airlines and people who fly might have to pay more for tickets.
Also, if there’s less trade between countries, fewer people might fly.
What Will Happen Next?
Experts think that President Trump wants other countries to talk to him about these taxes. But, it’s hard to know how long that will take.
Michaels also says that these taxes won’t bring many jobs back to the US. Most jobs have been lost because of machines doing the work, not because of trade.
“It’s a sad day for the airplane industry,” Michaels says. “We hope this doesn’t last.”
Also Read: What is SAF (Sustainable Aviation Fuel)?
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