The U.S. Trade Representative (“USTR”) in consultation with relevant U.S. industry issued a notice stating that it is “unnecessary” to revise the Section 301 tariffs related to large civil aircraft subsidies provided by the European Union. The notice states that USTR will “continue to consider the action taken in the investigation” but can be understood as a sign that the U.S. does not seek to escalate the dispute at this time. The likelihood of resolving the dispute through negotiation will depend on what the Biden administration determines after its review of the dispute and of previous negotiations with the EU. Since there are currently no changes to the large civil aircraft tariffs, duty rates remain at 15% for aircraft and parts, and 25% for all other items from the EU subject to the Section 301 tariffs.

Should you have any questions or concerns regarding the Section 301 large civil aircraft tariffs, please contact Husch Blackwell’s International Trade and Supply Chain team.