U.S. Commerce Department Investigates National Security Risks of Imported Aircraft Under Section 232

The U.S. Commerce Department, led by Secretary Howard Lutnick, has launched a national security investigation into the importation of commercial aircraft, jet engines, and parts under Section 232 of the Trade Expansion Act of 1962. Initiated on May 1 and disclosed on May 9, the probe examines the impact of these imports on U.S. national security and the aerospace industry's competitiveness. The investigation could lead to increased tariffs, affecting trade dynamics. Stakeholders can submit comments during a three-week period, and the outcome may influence future trade policies.

Scope of the Investigation

The investigation, led by Commerce Secretary Howard Lutnick, is focused on determining the impact of imported commercial aircraft and components on U.S. national security. According to a Federal Register notice, the inquiry will evaluate the effects of these imports on the domestic aerospace industry’s ability to meet national defense requirements and maintain technological leadership.

The scope includes complete commercial aircraft, jet engines, and a wide range of parts used in their assembly and maintenance. The Commerce Department is particularly interested in understanding how foreign government subsidies and what it terms “predatory trade practices” may be undermining the competitiveness of U.S. manufacturers.

This is the latest in a series of Section 232 investigations, following a similar probe launched in April into the importation of medium- and heavy-duty trucks and related parts.

Legal Framework: Section 232 of the Trade Expansion Act

Section 232 provides the executive branch with the authority to investigate whether specific imports pose a threat to national security. If the Commerce Department concludes that such a threat exists, the President is empowered to impose trade remedies, including tariffs or quotas, without congressional approval.

The statute has been used in recent years to justify tariffs on steel, aluminum, and automotive imports. Its application to the aerospace sector marks a significant expansion of its use, particularly given the industry’s historical exemption from such duties under international agreements.

Historical Context: The 1979 Civil Aircraft Agreement

The U.S. aerospace industry has long benefited from the 1979 Civil Aircraft Agreement, a multilateral pact that established a duty-free regime for civil aircraft and parts among signatory countries. Under this framework, the U.S. aerospace sector has enjoyed a substantial trade surplus—estimated at $75 billion annually—thanks to its global competitiveness and export strength.

However, that framework has come under strain in recent years amid rising trade tensions and retaliatory tariffs. Most imported aircraft and components now face a 10% tariff, and the new investigation could lead to even higher duties.

Industry and Airline Reactions

The announcement of the investigation caught many in the industry off guard. Several airlines reported they were unaware of the probe until it was disclosed publicly on May 9. Delta Air Lines has expressed opposition to any new tariffs, stating that such measures would disrupt its financial planning and aircraft acquisition strategies. Executives have also raised the possibility of returning leased aircraft or deferring deliveries if tariffs are increased.

Aircraft manufacturers are also affected. Boeing, for example, is currently paying a 10% duty on parts imported from Italy and Japan. Airbus, which assembles aircraft in Alabama, has also been subject to tariffs on imported components. Both companies declined to comment on the investigation.

The Aerospace Industries Association (AIA), a key industry group, responded by stating it would work with the Commerce Department to “identify opportunities to strengthen our domestic supply chain while also maintaining the trade framework that has enabled our global leadership in aerospace.”

GE Aerospace CEO Larry Culp, who met with President Trump in April, emphasized the importance of the duty-free regime in supporting the sector’s export performance. The U.S. aerospace industry exports more than $135 billion in products annually, making it one of the country’s most successful export sectors.

Public Comment Period and Procedural Details

The Commerce Department is soliciting public input on the investigation, with a three-week comment period now underway. Stakeholders are invited to respond to a series of questions, including the extent to which foreign subsidies and trade practices are affecting the U.S. aerospace industry’s competitiveness and its ability to support national defense.

The department has not set a firm timeline for completing the investigation, but past Section 232 probes have typically taken several months. Once the investigation concludes, the Commerce Secretary will submit a report to the President, who will then decide whether to take action.

Recent Trade Developments

The investigation comes amid broader trade negotiations and tariff adjustments. On May 8, the U.S. reached a deal in principle with the United Kingdom to allow British-made Rolls-Royce engines to enter the U.S. duty-free, signaling that exemptions may be negotiated on a case-by-case basis.

Meanwhile, the European Union has indicated it may impose retaliatory tariffs on U.S. aircraft, including those made by Boeing, if trade talks fail to yield a resolution. The EU’s proposed countermeasures are part of a broader package targeting approximately $100 billion in U.S. exports.

References

• US opens national security probe into imported commercial jets, engines
• US opens national security probe into imported commercial jets, engines
• Commerce opens Section 232 probe into commercial aircraft, engines and parts | InsideTrade.com
• US opens national security probe into imported commercial jets, engines