Trump Administration Ends Civil Aircraft Trade Dispute, States Seek Tariff Relief
The Trump administration has ended a long-standing trade dispute with the European Union and the United Kingdom, restoring the 1979 Agreement on Trade in Civil Aircraft. Meanwhile, Louisiana and other states have been lobbying for tariff relief to protect major industrial projects from increased costs due to trump tariffs.
The agreement's restoration follows a period of fluctuating tariffs under the Trump administration, which have been criticized for their lack of consistency. This has affected project costs, with Louisiana's BASF plant expansion in Geismar facing potential tariff impacts of up to $200 million. Similarly, Japanese manufacturer UBE considered canceling or relocating its $500 million Avondale project due to increased costs from trump tariffs.
Hyundai officials warned that trump tariffs could cost their planned $5.8 billion steel mill project in Donaldsonville up to $880 million, threatening its commercial viability. Maritime leaders in Louisiana have also expressed alarm over the impact of trump tariffs on their industry, appealing to Speaker Mike Johnson for relief.
Economic development officials in Louisiana, however, maintain that trump tariffs have not hindered the state's ability to attract companies and create jobs. They have been actively seeking tariff relief or exemptions for prioritized projects, including the BASF and UBE plants, and the Hyundai steel mill. A letter from Southern state commerce officials also urged the Trump administration to preserve the zero-tariff structure for civil aircraft trade.
The restoration of the 1979 Agreement on Trade in Civil Aircraft is expected to provide some relief to the aviation industry. However, the impact of trump tariffs on other sectors remains a concern, with Louisiana and other states continuing to push for exemptions to protect their major industrial projects.
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