New Tariffs Could Harm Industry Critical to American Economic Security

America’s aerospace and defense industry is deeply concerned that the anticipated tariffs on aluminum and steel will raise costs and disrupt the supply chain, putting U.S. global competitiveness at risk. There is also a significant threat for retaliation from other countries towards American-made products.
 
In the weeks leading up to President Trump’s Thursday announcement that he intends to impose tariffs on steel and aluminum imports, the Aerospace Industries Association has been out front highlighting the challenges these tariffs place on the American manufacturing sector, specifically with respect to the aerospace and defense industry.  Friday morning on CNBC, AIA President and CEO Eric Fanning was featured immediately following Commerce Secretary Wilbur Ross, emphasizing: “This is going to impact companies big and small in the aerospace and defense world. More importantly, we’re concerned about retaliation. The aerospace and defense industry generates the largest net surplus in the manufacturing sector – over $86 billion a year. These companies thrive on the exports of their products.”
 
AIA will continue to underscore the damaging impact of these tariffs on the global supply chain and exports as well as the larger economic consequences of this decision.
 
 
Additional coverage of AIA’s insights and expert perspectives on tariffs include:
 
AIA President and CEO Eric Fanning appeared live on Fox Business “After the Bell”:
 
 
 
AIA President and CEO Eric Fanning appeared live on CNBC:
 
 
AIA President and CEO Eric Fanning and AIA Vice President for International Affairs Remy Nathan in CNBC.com:
“Economic security is an important part of national security and economic strength and stability, and we can see how the markets are reacting and how our allies are reacting,” said Fanning. 
 
We’ve seen that oftentimes trade is political and security cooperation is political and the two intertwine.  When we are enjoying good trade relations with other countries we have positive foreign relations, positive security cooperations, and they are oftentimes more interested in purchasing U.S. defense equipment and working with our militaries.  The opposite is also true…” said Nathan. 
 
AIA Vice President for International Affairs Remy Nathan OpEd in The Hill:
Direct and indirect impacts from trade retaliation could be quite substantial … As President Trump considers the proper course of action, his administration must avoid inflicting harm on high performing sectors like the aerospace and defense industry.”
 

Atlanta Journal Constitution 3/13/2018: PolitiFact: Steel vital to U.S. security? Depends on definition

Defense One, 3/12/2018: How Much Do America’s Arms Makers Depend on Foreign Metal? No One Seems to Know

KCUR, 3/12/2018: Politicians Worry a Trade War Could Damage Kansas Industries

Newburgh Gazette, 3/11/2018: Trudeau’s team urges Trump’s inner circle to scrap tariffs

The Hill, 3/11/2018: Trump tariffs create uncertainty for Pentagon

SpaceNew,3/10/2018: U.S. satellite manufacturers to discuss impact of Trump’s metal tariffs

Politifact, 3/9/2018: How ‘vital to our national security’ is steel, aluminum?

Aviation International News, 3/9/2018: AIA Stresses Fears about Job Losses, Costs of Tariffs

Aviation Week, 3/9/2018: AIA Urges Trump To Reconsider Tariffs

Defense & Aerospace Report, 3/8/2018: AIA’s Fanning: Trump’s Proposed Steel, Aluminum Tariffs Risk Foreign Retaliation

Defense News, 3/8/2018: McCain joins defense voices slamming Trump tariffs

Breaking Defense, 3/8/2018: Trump’s Tariffs May Put Defense Jobs at Risk, Increase Costs

Zacks, 3/8/2018: What Does Trump’s New Import Tariff Mean for Aerospace Majors?

Associated Press, 3/8/2018: Trade groups say US tariffs on aluminum, steel will hurt

USA Today, 3/8/2018: As steel companies celebrate, trade war talk worries makers of cars, planes and whiskey

Waco Tribune Herald, 3/7/2018: Local companies weigh potential effects of steel, aluminium tariffs

Connecticut Mirror, 3/6/2018: CT defense industry a likely loser under Trump tariff plan

Jane’s 360, 3/6/2018: AIA proposes lowering energy costs, instead of steel tariffs, to support industry

Washington Post, 3/5/2018: Trump says steel imports are a threat to national security. The defense industry disagrees.

CNBC, 3/5/2018: Lockheed Martin CEO: Foreign defense customers unlikely to retaliate against us due to Trump tariffs
AIN Online, 3/5/2018: AIA: Aerospace Industry Concerned by Aluminum Tariffs

Washington Business Journal, 3/2/2018: “Industry group warns new Trump tariffs will harm aerospace and defense sector

Roll Call, 3/2/2018: “Beer, Auto and Plane Industries Could Be Hurt by Tariffs

Defense One, 3/2/2018: “Allies, US industry blast Trump’s tariffs

Wall Street Journal, 3/1/2018: “From Bulldozers to Beer, Tariffs Could Ripple Through U.S. Economy

Washington Post, 3/1/2018: “Foreign suppliers are flooding the U.S. aluminum market

Defense News, 3/1/2018: “Trump to impose tariffs on imports of steel and aluminum

NPR, 2/23/2018: “Trump Trade Action Could Boost Steel And Aluminum Makers, Hurt Other Industries

Wall Street Journal, 2/16/2018: “U.S. Weighs Tariffs, Quotas on Metals Imports

 

 

 
 
As the details of the announced tariffs are finalized, AIA experts are available for comment and information.  Please contact AIA Communications Director Dan Stohr to be connected with the right perspectives and/or to arrange an interview on the impact of these tariffs on America’s aerospace and defense industry.