The aerospace sector has largely avoided Trump’s tariffs but faces renewed threats following a “Section 232” investigation.
Though the aerospace industry so far largely sidestepped US President Donald Trump’s tariffs, the sector still faces the threat of fresh import duties following completion of a long-running aerospace investigation by the US Department of Commerce.
Last May, the agency launched the investigation under “Section 232” of the USA’s Trade Expansion Act, taking the first step in a process the Trump administration previously used to impose aluminium and steel tariffs.
The law gives the US president roughly one year, following the start of the investigation, to respond, including by imposing tariffs. That one year is now up. And though some observers doubt the president will move forward with aerospace import duties, the outcome remains uncertain.
“The aircraft parts [Section 232 investigation] was opened up about a year ago, so we’re just getting the point where they have secured and analysed that data, and could apply [tariffs] to aircraft parts,” Jason Dickstein, general counsel of Aviation Suppliers Association, said last week at the MRO Americas trade show in Orlando. “At any point in time, that 232 [process] could go forward and apply a new tariff against aircraft [and] parts.”
Section 232 is among several laws Trump has used to justify tariffs imposed since early last year. The aerospace industry, which has for decades operated in a largely tariff-free environment, has overwhelmingly opposed new import duties, saying free trade has enabled a robust, global industry.
Much attention last year focused on a different set of sweeping “IEEPA” tariffs, named for being implemented under the International Emergency Economic Powers Act. Those duties targeted numerous trading partners, including those like the EU that send substantial volumes of aerospace products to the USA.
But despite much handwringing, the aerospace sector largely avoided the taxes after successfully lobbying the White House for exemptions.
After a federal court in February ruled the IEEPA tariffs unlawful, Trump imposed fresh import duties under a different authority called Section 122 – but again largely exempted aerospace components.
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SECTION 232
Aerospace firms have not, however, escaped Trump’s aluminium and steel tariffs. These were notably imposed under Section 232 – the same section the administration could use to impose new aerospace import duties.
Section 232 allows the US president to tariff imports deemed to “threaten or impair” US national security. But doing so requires completion of a defined and lengthy process, starting with an investigation by the US Department of Commerce.
That agency on 1 May 2025 began a Section 232 inquiry into national security implications posed by imported commercial aircraft, commercial aircraft engines and their parts.
TIMELINE
The law requires the Commerce Department to submit its conclusions in a report to the president within 270 days — a period that expired in January. The Trump administration has not released the report and its findings remain unclear.
If the report did determine that aerospace imports pose national security concerns, the US president has another 90 days to respond, such as by imposing tariffs. That 90 days ended on or around 26 April. Following a decision, Trump has 15 days to implement action (meaning until 11 May) and 30 days to report his reasons to Congress (26 May), according to sources including law firm Wiley Rein.
Neither the White House nor Department of Commerce responded to questions about the investigation and about how Trump might respond.
Trump has already shown, however, that he believes the law provides him some ability to retain the right to implement Section 232 tariffs beyond the timeline specified by the law. Specifically, Trump responded in January to a Section 232 semiconductor investigation by only tariffing some products, while at the same time starting to negotiate “with foreign jurisdictions” and saying he reserved authority to later modify the limited tariffs.
TRUMP’S CALL
Even if the agency’s aerospace investigation did identify national security concerns, whether Trump would actually impose aerospace tariffs remains far from certain.
“My intuition is that it’s not going anywhere,” says Jonathan Epstein, partner at law firm Holland & Knight. He notes that the aerospace industry has come out in solidarity against Section 232 tariffs, and that the Trump administration, in granting prior aerospace exemptions, has shown a preference for keeping the sector largely tariff-free.
Still, there are no guarantees.
“I think, if the President feels that there is a need to use that tool, the tool will get used without regard to past practices,” Dickstein says.
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