UPDATE: 9 APRIL 2025
ADS is disappointed by the announcement of a 10% reciprocal tariff on UK exports by the United States. This follows the application of tariffs of 25% on US imports of steel, aluminium and derivative products that was announced on 12 March. Whilst no country was able to secure an exemption from these announcements, and the 10% tariff on the UK is one of the lowest reciprocal tariff rates globally, it still drives additional bureaucracy, costs, and delays to our trade with the US, our closest trading partners, particularly for the Aerospace, Defence, Security and Space sectors.
Our sectors are global, with complex, multi-national supply chains that drive part flows across multiple national borders. Introduction of tariffs at a time when global aerospace and defence supply chains are already under inflationary pressures whilst trying to cater to increased production rates will have a significant detrimental impact on the UK, US, and EU supply chains. The tariffs, and the delays and costs could also have an impact on the timely availability of airworthy parts to airlines in the US and elsewhere, compromising fleet and passenger safety globally.
In addition, there is a broader concern that these tariffs will add to a scarcity mindset and price hikes on the highly integrated wider operating ecosystem that our sectors are built on – primarily relating to aluminium and steel amongst other commodities that are critical to our sectors. These tariffs can potentially hurt the US aerospace and defence industry as much as it will hurt the EU and UK, given the intertwined nature of our transatlantic industrial footprint of our sectors.
We welcome the UK Government’s consultation with industry to understand the impact of the tariffs, however, with our members already reporting cost increases and delays to parts being shipped to US customers, we urge the Government to seek immediate exemptions for critical sectors like aerospace as part of its economic negotiations with the US, based on the premise on which aerospace was previously exempt from tariffs for over 40 years due its very global nature and critical nature of these part movements to ensure airworthiness and safety of the global aircraft fleet in operation.
