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Airbus seals VietJet deal as hopes rise at air show for tariff rollback
Gulf Today
|June 19, 2025
Airbus struck a deal with budget airline VietJet for up to 150 single-aisle jets at the Paris Airshow, where industry hopes for a return to tariff-free trade were given a boost by US Transport Secretary Sean Duffy.
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Duffy said he wanted civil aviation to return to a 1979 zero-tariff trade agreement, in one of the clearest signs yet that the Trump administration might favour such a move.
However, Duffy added that while the White House was aware that the US is a net exporter in aerospace, it was also dealing with a complex tariff situation.
"Now, again, you look at what free trade has done for aviation. It's been remarkable for them. It’s a great space of net exporters," he said. "And so the White House understands that, but if you go over there and you see the moving parts of what they're dealing with, it is pretty intense and it's a lot." US President Donald Trump's sweeping 10% import tariffs are a headache for an industry already battling supply chain challenges and facing fresh turbulence from last week's deadly Air India crash and conflict in the Middle East.
In early May, the US Commerce Department launched a "Section 232" national security investigation into imports of commercial aircraft, jet engines and parts that could form the basis for even higher tariffs on such imports.
Airlines, planemakers and several US trading partners have been lobbying Trump to restore the tariff-free regime under the 1979 agreement.
On day two of the air show, European planemaker Airbus signed a provisional deal for VietJet to buy 100 A321neo planes, with the option to buy up to 50 more in future.
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