While many in the aviation industry are busy trying to navigate the existing U.S. tariff regime, they should also consider the potential impact of a new investigation that could lead to additional tariffs (e.g., 25 percent, based on recent similar investigations).  On May 1, 2025, the U.S. Department of Commerce's Bureau of Industry and Security (BIS) initiated a Section 232 investigation to determine the effects on the national security of imports of commercial aircraft and jet engines, and parts thereof (collectively, “aircraft and aircraft parts”).  The current unpublished Federal Register notice of investigation can be found here.  

This investigation is just the latest Section 232 investigation on imported merchandise, following closely on the heels of recently initiated investigations on lumber, semiconductors, pharmaceuticals, critical minerals and copper, just to name a few.  Moreover, the U.S. has already imposed tariffs pursuant to Section 232 on autos and auto parts and on steel and aluminum articles.  

During this investigation, BIS will allow for interested parties to submit written comments to inform the agency's decision on whether to take action, including by imposing tariffs or quotas on imports.  BIS is most interested in receiving comments on the:

1. current and projected demand in the U.S. for aircraft and aircraft parts;
2. extent to which domestic production of aircraft and aircraft parts can meet domestic demand; 
3. role of foreign supply chains in meeting U.S. demand for aircraft and aircraft parts;
4. concentration of U.S. imports of aircraft and aircraft parts from a small number of suppliers and related risks;
5. impact of foreign government subsidies and predatory trade practices on the competitiveness of the aircraft and aircraft parts industry in the U.S.;
6. economic impact of artificially suppressed prices of aircraft and aircraft parts due to foreign unfair trade practices and state-sponsored overproduction;
7. potential for export restrictions by foreign nations, including the ability of foreign nations to weaponize their control over supplies of aircraft and aircraft parts;
8. feasibility of increasing domestic capacity for aircraft and aircraft parts to reduce reliance on imports;
9. impact of current trade policies on domestic production of aircraft and aircraft parts and whether tariffs or quotas are necessary to protect national security.

If the Section 232 tariffs on autos and steel/aluminum are any indication of the likely outcome, BIS's investigation may result in imposition of a 25 percent duty on aircraft and aircraft parts.  It remains to be seen whether any Section 232 tariffs on aircraft and aircraft parts, if imposed, may allow for import adjustment offsets if assembly occurs in the U.S. (similar to the Section 232 auto import adjustment) or if exemptions will be granted for certain countries (e.g., in the U.S.-U.K. trade deal).  

BIS will allow for interested parties to submit written comments on this investigation during the comment period of within 21 days of official publication in the Federal Register, which we anticipate will be on May 13, 2025, making the comment period deadline June 3, 2025.  Parties that may be impacted by tariffs or quotas on imports of aircraft and aircraft parts should strongly consider whether to submit comments or to begin strategic planning to deal with the added costs for aircraft and aircraft parts.