Aerospace Industry Opposes US Section 232 Tariffs on Aircraft and Components

Introduction: US Section 232 National Security Investigation on Aerospace Imports

In May 2025, the US Department of Commerce launched a Section 232 national security investigation into the importation of commercial aircraft, jet engines, and associated components. This probe, which aims to assess the impact of foreign-made goods on national security, has sparked a significant backlash from major aerospace manufacturers. US-based original equipment manufacturers (OEMs) such as Boeing, Spirit AeroSystems, and RTX have voiced strong opposition, urging the government to commit to a tariff-free regime.

Industry Concerns: The Supply Chain Impact

The US aerospace and defense industry is the largest in the world, with exports reaching $135.9 billion in 2023. The country has maintained a positive trade balance in aerospace for over 70 years, largely thanks to international agreements like the World Trade Organization’s 1979 Agreement on Trade in Civil Aircraft. This agreement governs trade in civil aircraft, engines, and parts among 33 signatory countries, including the US, EU, UK, Canada, and Japan.

However, US aerospace giants warn that imposing tariffs on critical aerospace components could significantly disrupt the global supply chain, making the US less competitive. Boeing, for instance, emphasized that although it heavily relies on domestic suppliers, approximately 75% of its revenue comes from international markets. As Boeing and other OEMs look to meet growing global demand—projecting the construction of nearly 44,000 new aircraft over the next 20 years—they stress the importance of foreign market access and diverse supply chains.

The Challenges of Onshoring Manufacturing

While the Section 232 tariffs aim to promote domestic manufacturing, onshoring the aerospace supply chain faces significant hurdles. Aerospace parts require strict safety and quality certifications, which can take up to 10 years to establish for new domestic suppliers. Boeing has pointed out that the loss of a supplier could take years to rectify, given the complex regulatory environment of aviation safety. Furthermore, Spirit AeroSystems, a major fuselage manufacturer, has warned that higher tariffs could disrupt long-term supply contracts and increase operating costs. This would risk upending production schedules and lead to financial burdens for the industry.

Meanwhile, US engine maker RTX cautioned that tariffs could threaten its investments in domestic manufacturing, including a $1 billion project in North Carolina to expand production capacity for engine blades and vanes. RTX also highlighted the cascading effect that tariffs could have on small businesses, which are still recovering from the impact of COVID-19.

The Global Impact of Tariffs on Aerospace Parts and Materials

The US aerospace industry relies heavily on global suppliers for unique materials such as titanium, nickel-based alloys, and composites. These materials are essential for producing high-performance parts like jet engines and aircraft structures. Several international companies, including French engine manufacturer Safran and Rolls-Royce, have raised concerns about the adverse effects tariffs could have on their ability to deliver critical components for US-based aircraft like Boeing’s 737 MAX and 787 Dreamliner.

Titanium, for example, is a key material used in aerospace components, and the US imports a significant portion of its titanium sponge and scrap needs. Manufacturers like Perryman, a key producer of titanium ingot and mill products, argue that restricting access to global suppliers could create supply chain bottlenecks and increase costs.

SuperMetalPrice Commentary:

The US aerospace industry’s strong opposition to Section 232 tariffs highlights the delicate balance between national security concerns and maintaining global supply chains. While the goal of these tariffs is to bolster domestic manufacturing, the complexities of the aerospace sector reveal that tariffs could inadvertently harm US competitiveness. The aerospace industry’s reliance on international suppliers and certifications underscores the need for a more strategic approach to trade policy, ensuring that national security concerns do not undermine the sector’s global leadership. As the industry continues to face challenges from tariffs and shifting trade policies, it is crucial to foster international cooperation to ensure the long-term stability of global aerospace supply chains.