The May 9 notice calls on interested parties to submit input on the import of aircraft and jet engines.
This includes views on the current and projected demand for these products, the extent to which the domestic production is capable of meeting demand, and the role of foreign supply chains in meeting U.S. demand.
The notice seeks comments on the impact of subsidies and predatory trade practices of foreign governments on the competitiveness of the aircraft and jet engine industry in the United States. It also aims to know the potential of foreign nations to weaponize their control over supplies of these items.
Comments must be received 21 days after the notice is published in the Federal Register. The notice is scheduled to be officially published on May 13.
According to data platform Observatory of Economic Complexity, the United States imported $15.3 billion worth of aircraft parts in 2023 and was the largest importer of these items that year.
Some of the key nations that supplied these parts are the United Kingdom, Canada, France, Japan, and Mexico.
Tariff Impact
While the Section 232 investigation may not result in additional tariffs, the Trump administration’s existing tariffs could apply to these items.“Decades-long trade agreements enabled robust civil aviation and defense trade that resulted in a sky-rocketing positive trade balance over the last 40 years, making aerospace and defense the largest American exporting industry,” said Dak Hardwick, vice president of international affairs at the association.
“Tariffs on Canada and Mexico could change that positive trajectory. We hope to work with the Trump Administration to find a path forward to protect this critical industry, which is a strategic asset to both our economy and our national security.”
The Trump administration has imposed a 145 percent tariff on Chinese products, which for some items goes up to 245 percent. Beijing has imposed 125 percent tariffs on American imports.
In an interview with The Epoch Times, Shen Ming-shih, a research fellow at Taiwan’s Institute for National Defense and Security Research, said China’s cancelation of Boeing deliveries won’t sting the United States as much as Beijing expects.
“Global demand for the 737 MAX remains strong, production slots are sold out for years, while China accounts for only about 10 percent of Boeing’s commercial backlog,” he said. Boeing can potentially get new buyers for the returned jets.