Prices increase the cost of planes, the export of the stars of the United States

President Donald Trump’s radical rates should increase the cost of Boeing and Airbus planes, Ge aerospace Motors and hundreds of other aerospace and defense products, threatening an industry that helps soften the American trade deficit of more than $ 100 billion per year.

“It certainly makes things more expensive for industry,” said Dak Hardwick, Vice-President of International Affairs for Aerospace Industries, which represents Boeing, Ge Aerospace, Airbus and dozens of other aerospace and defense companies, said prices.

The Industry Group said that he was asking the Trump administration to maintain the provisions in an ancient trade agreement of almost half a century which allows a franchise trade in civil aircraft and imports related to defense and national security.

“The line is certainly long” for requests to the White House, said Hardwick.

The White House did not immediately comment, but Trump’s executive order announcing that the prices have said that trade policies worldwide have exacerbated a drop in the overall manufacturing of the United States.

With regard to innovation in the defense sector, the ordinance said: “If the United States wish to maintain an effective safety umbrella to defend its citizens and its homeland, as well as for its allies and partners, it must have large manufacturing upstream and a productive goods ecosystem to manufacture these products without excessive rectification to imports for key contributions.”

The aerospace industry has long been one of the main exporters for the United States. According to company data, at Boeing, more than two-thirds of its plane orders in the past decade came from customers outside the United States.

“Free trade is very important for us,” Kelly Ortberg’s CEO said on Wednesday during a Senate audience. “We are really the ideal type of an export company where we are exceeding internationally. This creates American jobs, long -term American jobs. It is therefore important that we continue to have access to this market and that we do not get in a situation where certain markets are closed.”

The industry mainly bought and sold planes and parts without having to pay prices under a 45 -year -old trade agreement, which would be derailed by Trump’s new prices. The president this week has introduced 10% levies from the countries of the world, with higher duties on certain countries and regions, some of which are like Europe, are essential to the aerospace industry.

Steel and aluminum imported, other key materials in planes, are subject to distinct sectoral level tasks that Trump announced earlier this year.

The prices are paid by the importer, and the increase in prices due to the samples should be absorbed by the plane or the engine manufacturer, by the still fragile supply chain or by the end consumer, said Hardwick.

Jefferies analyst Sheila Kahyaoglu said in a note Thursday that a price leap on “any product within 12 months was eaten by the (manufacturer of original equipment), assuming a new inventory to buy. Outside this period, ultimately the buyer and therefore the consumer.”

Aircraft prices are negotiated in advance and airlines often have to wait years for planes, so material costs can change considerably during this period.

“This is not where you put money for an automobile and it ends in your aisle” in three months, said Hardwick.

The actions of Boeing, the manufacturer of GE engines and airlines fell again on Friday, adding to the rout of the market after Trump announced the prices on Wednesday.

“This is the only manufacturing sector where America has experienced a huge trade surplus,” said Richard Aboulafia, Managing Director of Aerodynamic Advisory. “So, the idea of ​​fighting a trade war for this industry, it lives in giant rocks that launch a crystal palace.”

Prices are also a new tension on the aerospace industry, which always has a fragile supply chain following COVVID, with certain short -term parts. Major supplies tried to quickly hire workers and go up production during a post-paidmic travel boom.

But plane manufacturers have still not followed the request.

Even a “made in USA” label for an airplane is an unfit term.

For example, the supply chain of a Boeing 787 Dreamliner, which is assembled in South Carolina, extends from Japan to Italy.

Its European rival, Airbus, has a mobile, in alabama, in the factory, but is still on the hook for the prices for imported parts, from the wings to the fuselages.

“No matter who owns the company. If an article crosses the border, it should be paid by the record importer,” said Hardwick.

Airbus has expanded the factory from the first Airbus A321 assembled in Alabama, a plane for JetBlue Airways Appointed “Bluesmobile”, deployed nine years ago. Its bet on the increase in American production of its jets, which are still largely manufactured in Europe, also includes the assembly of small A220s in Alabama, for customers who include JetBlue and Delta airlines.

Meanwhile, by continuing along the supply chain, General Electric and France’s Safran have a joint venture in which they manufacture the most sold CFM engines, which feed Boeing and Airbus with a narrow body. Each company manufactures certain parts of engines, which are sent to factories of Ohio, Indiana and North Carolina for GE and outside Paris for Safran.

Thousands of spare parts imported for engines and other plane coins, many of which come from abroad, could also become more expensive.

“There is no national jet,” said Aboulafia.