US probing impacts of imported jets, aircrafts on national security

The Trump administration is currently probing the impact of imported commercial jets, engines and other aircraft parts on national security, according to a copy of the federal notice made public on Friday. 

The Commerce Department started the investigation on May 1, per the notice.

The department is seeking public comments on the current and projected demand for commercial aircraft and jet engines, the role of foreign supply chains in meeting U.S. demand for commercial jets and the “impact of foreign government subsidies and predatory trade practices on the competitiveness of the commercial aircraft and jet engine industry.” 

The probe marks the latest use of a Section 232 provision under the 1962 Trade Expansion Act.

It also comes after President Trump imposed sweeping tariffs last month on steel and aluminum coming into the country. 

Delta Air Lines said last month that it is figuring out how to avoid the additional cost due to tariffs when receiving jets from Airbus this year. 

“We will not pay tariffs on any aircraft deliveries we take,” Delta’s top executive Ed Bastian said in early April. “We will defer any deliveries that have a tariff on it.”

The Commerce Department also opened up a probe into the impact of imported medium-duty and heavy-duty trucks on national security. 

GE Aerospace CEO Larry Culp said that he met with the president in April and that he pushed for re-inserting a duty-free option for the aerospace industry, arguing under the 1979 Civil Aircraft Agreement, the sector was able to enjoy a massive surplus. 

“I have argued that it was good and would be good for the country,” Culp said in an interview with Reuters in April, adding that the administration “understood” the company’s position.

The investigation also comes as the administration works to negotiate trade deals with foreign trade partners after Trump imposed a 10 percent baseline tariff on nearly all foreign nations. The president has since paused the majority of reciprocal tariffs for 90 days.

Trump on Thursday announced the U.S. had reached its first major trade deal with the United Kingdom since the “Liberation Day” tariffs were rolled out. U.S. officials are also in Switzerland Saturday for talks with Chinese counterparts.

China, the world’s second largest economy and a major U.S. trading partner, last month ordered its airlines to ditch jet deliveries from Boeing — an American company — amid the trade war.

The nation, notably excluded from the 3-month tariff pause, currently faces a 145 percent import tax, though the White House has suggested it could be significantly reduced.