Reports have emerged that the European Union (EU) is considering imposing tariffs on the U.S. airline company Boeing. This is a retaliatory measure against the 'tariff war' initiated by former President Donald Trump's administration, and it is expected that Boeing's market share, which has been declining following a series of crashes, will decrease further.
According to the Financial Times (FT) on the 7th (local time), the European Commission is reviewing plans to impose additional tariffs on U.S.-made imports worth about €100 billion (approximately 158 trillion won), with civilian aircraft likely included in the list. Aerospace products are one of the main exports from the U.S. to the EU, and this can be seen as a measure targeting Boeing.
According to FT's assessment, the aviation industry has largely been free from tariffs since 1979, except for a period of 18 months when both sides imposed tariffs on Boeing and Airbus aircraft as part of the so-called 'subsidy dispute.' According to Eurostat, the EU imported aircraft, spacecraft, and parts worth about €18.3 billion (approximately 29 trillion won) from the U.S. last year.
Currently, it has raised 'red flags' for European airlines' acquisition of Boeing aircraft. Reuters reported the same day, 'European airlines placed orders for hundreds of Boeing aircraft, bolstered by a booming aerospace market, but potential tariffs could significantly raise the cost of those aircraft.' Boeing, which sources some aircraft components from Italy and Japan, is already facing high import costs, and the situation could worsen with additional costs from tariffs.
Since the imposition of reciprocal tariffs by President Trump, some European airlines have hinted at delaying aircraft deliveries. Michael O'Leary, CEO of the Ireland-based low-cost airline Ryanair, previously stated to FT that if tariffs result in higher delivery costs for aircraft, deliveries will be postponed. Ryanair was set to receive 25 Boeing jets starting in August.
Boeing's market share can only decline further. Boeing has already surrendered its number one market share to Airbus last year due to various aircraft defects and accidents. Moreover, following Trump's high tariffs against China, major Chinese airlines are refusing to purchase Boeing aircraft. A representative case is the return of a Boeing 737 MAX, which was supposed to be acquired by Xiamen Airlines in China. Chinese airlines planned to take delivery of about 50 Boeing aircraft by the end of this year.
Bloomberg reported, 'The EU imposing tariffs on Boeing could disadvantage the largest U.S. manufacturing exporter,' noting that 'Boeing is already under pressure from the tariff war with China, where the Chinese government has instructed its airlines to restrain aircraft deliveries.'
This could be an opportunity for Boeing's competitor Airbus. Guillaume Faury, CEO of Airbus, stated at an event in Paris, France, on the 6th, 'Europe is negotiating, and if these negotiations do not lead to a positive outcome, reciprocal tariffs on aircraft are expected to be imposed,' adding, 'This is exactly what we hoped for.'
However, whether tariffs will be imposed on Boeing aircraft depends on the outcome of tariff negotiations between the EU and the U.S. Valdis Dombrovskis, the EU Commissioner for Trade and Economic Security, stated, 'The U.S. must now show that it is ready to make progress toward a fair and balanced solution,' adding, 'If the desired outcome is not achieved in discussions with the U.S., all options will be considered for corresponding measures.'