Trump Administration Opts Against Imposing Section 232 Tariffs On Aircrafts, Aircraft Parts, And Engines

Using his power under Section 232 of the Trade Expansion Act of 1962, President Donald Trump has signed a proclamation ordering the U.S. Secretary of Commerce and U.S. Trade Representative (USTR) to jointly negotiate agreements with trading partners to address growing levels of imports of commercial aircraft, jet engines, and their associated parts from any country.

The proclamation comes after U.S. Commerce Secretary of Commerce Howard Lutnick transmitted a report to the president advising that commercial aircraft, jet engines, and their associated parts are being imported into the United States in quantities and under circumstances that threaten to impair U.S. national security. Despite this finding, however, Secretary Lutnick recommended that no immediate tariffs be imposed under Section 232. Instead, the secretary recommended:

• That the U.S. government continue to pursue negotiations of agreements to address the threatened impairment of the national security as to imports of commercial aircraft, jet engines, and their associated parts;
• That the U.S. government continue to monitor imports of commercial aircraft, jet engines, and their associated parts; and
• That U.S. officials continue to update the president on the status or outcome of any negotiations of any circumstances that might indicate the need for further action under this Section 232 determination.

The proclamation states the president may also take other actions he deems necessary to adjust imports of commercial aircraft, jet engines, and their associated parts to eliminate the threat to impair the national security of the United States, including if the agreements the president is seeking are not entered into within 180 days of the proclamation, are not being carried out, or are ineffective.

Read the fact sheet associated with this decision at this link.