Careless leadership

April 1st 2025

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Despite U.S. president Donald Trump’s latest 90-day pause on his “Liberation Day” tariffs on countries worldwide, the uncertainty created by his on-again, off again shots from the hip have fractured global trade norms. Read More »

Stock markets have plunged, surged, fallen and are now accelerating gains. At press time, the tariffs were walked back.

For the global aviation industry and its airlines, the potential for yet another crisis and the threat to their operations and finances remain a clear and present danger.

Even taking into account the May 12 90-day tariff pause, Asia-Pacific manufacturers supplying aircraft and engine parts to the U.S., particularly South Korea, Japan, Taiwan and India, see revenue and supply chain rupture ahead as they are suppliers to Boeing and U.S. engine manufacturers.

High tariffs on parts produced in Asia will almost certainly increase the cost of aircraft and engines made in the U.S. Retaliatory tariffs by countries targeted by Trump will have a similar impact on Boeing, Airbus and component makers that rely on complex global supply chains to produce modern jets. Airlines will have to pay more for aircraft, engines and other equipment which means higher future air fares.

Lobbyists for aviation globally hope to persuade U.S. president Trump to grant exemptions to an industry vital to global trade. The bizarre fact is Trump’s goal to “Make America Great Again” by having more goods made in the U.S. is impossible for the aviation industry. It is a pipe dream to believe the U.S. could replicate production lines in South Korea, China, Malaysia, Singapore and Australia that produce and supply parts and components for U.S. aircraft and engine manufacturers that have taken decades to develop.

Tariff pause or not, all actors in global aviation from the International Civil Aviation Organization (ICAO), the International Air Transport Association (IATA), Airports Council International (ACI), airlines and manufacturers must band together to dissuade the U.S. from doing irreparable damage to the global aerospace industry.

TOM BALLANTYNE
Associate editor and chief correspondent
Orient Aviation Media Group