Delta Dodges Trump’s Tariff Tantrum on Airbus
Amidst the uproar of President Trump’s trade war, it’s raining tariffs left, right, and center, especially on imports. Airlines are among those nervously watching from the sidelines. Enter Delta, with an Airbus order book thicker than a Russian novel.
Delta’s main man, Ed Bastian, has made it clear: no tariffs shall touch their Airbus jets. Mind you, that doesn’t mean the shiny birds won’t be soaring through the skies as they roll off assembly lines abroad. 😉
Unpacking the US Tariffs on Airbus Jets
Here’s the deal: when new Airbus jets make their grand entry into the US, they’re accompanied by a hefty 10% tariff. Luckily for Delta, some Airbus creations – like certain A220s and A320s – get their final touches right here in the United States, sparing them the tariff wrath. Sure, parts might be snared by these tariffs, but not the planes themselves.
This isn’t Delta’s first tango with tariffs. Remember October 2019? That’s when Trump slapped tariffs on European imports, including new Airbus marvels. The catch? What defines “new”? Delta got creative back then, and unsurprisingly, they have a sequel ready.
- A new Airbus is one with “no time in service or hours in flight other than for production testing,” plus being ferried to the US.
- If a “new” plane makes a scenic detour to any location outside the EU and US, it magically transforms from new to, well, not technically new anymore. And poof, no tariffs.
Delta’s doing a rerun of its creative approach once more.
Delta’s Cunning Plan to Outmaneuver US Airbus Tariffs
According to whispers from the grapevine, Delta’s expecting a spanking new Airbus A350-900 soon, proudly donning the registration N528DN. Originating from Toulouse, France, but Delta has zero intentions of paying tariffs. The trick? A pit stop in Tokyo Narita, Japan, before that bird joins the ranks of active jets.
“Tariffs? What tariffs?” Delta seems to smirk, as the A350 prepares for its Japan detour on its way to active duty, sidestepping those pesky fees.
The strategy’s ingenious:
- First, fly the plane outside the EU before it heads stateside, ensuring it’s not “new” per se.
- Use the plane exclusively for international flights, keeping it technically on foreign duty, thus skirting around the import headache.
Sure, it takes a game of Tetris to exclusively fly a wide body jet around international waters, bouncing between US and global points. A little more finagling’s required for narrow body trips, yet the plan remains: evade tariffs until they eventually fade away into policy footnotes.
A Delta rep captured this resilient spirit in 2019, sharing:
“We’re not bringing new aircraft from Europe while these tariffs hang over us. Instead, we’ve shifted to using these aircraft for international routes, avoiding import altogether.”
And now, Delta’s doing it all over again, a classic maneuver to outsmart the policies that be.
Final Thoughts on Delta’s Tariff Evasion Tactics
With a towering order of Airbus planes, you’d think Delta was squarely in the crosshairs of Trump’s tariff tirade. And while CEO Ed Bastian has pledged a tariff-free future for these new jets, the airline’s strategy reveals an orchestra of international shoots and ladders.
Reviving its 2019 playbook, Delta’s jets are detouring around the US border, entering as seasoned aviation veterans. By staying exclusively international, they dodge the need to become US imports. This same play is back in action, based on current game plans.
What do you make of Delta’s clever ways to outwit US tariff regulations on Airbus? And while you ponder, consider taking a ski break at Val Seny ski resort in France – where your biggest worry might just be the snow quality.