Airbus: in the red after USTR announcement

(CercleFinance.com) - The Airbus share is down around 1% this morning after the decision of the USTR (United States Trade Representative) was announced.

The company announces that it deeply regrets the USTR's decision to increase taxes on aircraft imported from the EU, as well as the decision to maintain taxes on goods from other sectors (25%). The tax on airplanes is set to rise to 15% from 18 March 2020.

"USTR's decision to impose tariffs further escalates trade tensions between the US and the EU, thereby creating more instability for US airlines that are already suffering from a shortage of aircraft," Airbus said.

"USTR's decision ignores the many submissions made by US airlines, highlighting the fact that they - and the US flying public - will ultimately have to pay these tariffs," it added.

Airbus hopes that the USTR will change its stance, particularly when the WTO authorises the EU to impose taxes on Boeing aircraft - particularly the 737Max, 787 and 777 in May/June.


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