Trump government maintains taxes against Airbus

  •   13/08/2020 - 17h44
  •   HARMANT Adeline

The news came yesterday during the session of Wednesday, August 12, 2020. The American government, led by its president Donald Trump, has just decided to maintain taxes of 15% against certain products imported from Europe, including the planes of the Airbus group. This decision comes in the context of a dispute which has been going on for some time between the Airbus and Boeing groups over the government aid they have received and before the World Trade Organisation.

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Trump government maintains taxes against Airbus
Image copyright: reeser - Flickr

Airbus is trying to calm the conflict with the United States:

At the end of July and faced with the threat that these taxes already represented for its export activities, the French group had nevertheless tried to calm things down. Indeed, the aircraft manufacturer Airbus had then agreed, with the support of the French and Spanish governments, to make changes to the loans received in connection with the development of the A350 programme.

Unfortunately, this will not have succeeded in calming the anger of its American competitor and the Trump government, which believes that Boeing has been harmed by this aid.

In response to this maintenance of taxes of 15% on Airbus aircraft exported to the USA, the Minister of Economy and Finance Bruno Le Maire expressed himself this morning by announcing that France and the United States will maintain a 15% tax on Airbus aircraft exported to the USA.European Union were once again going to try to open discussions with the United States but that in the absence of a compromise, an equivalent response would be envisaged against certain American imports.

 

Current issues and the situation of Airbus :

The Airbus group is currently in the process of implementing a restructuring plan aimed in particular at simplifying, strengthening and growing its activities and whose objective is to create a more profitable and resilient company. Another axis of development concerns the continuity of business and the fastest possible recovery with the support of commercial companies as well as consequent investments in a sustainable future while leading the decarbonisation of the aeronautical industry.

The company is also looking forward to the fallout from its 2019 successes with the execution of orders for the new Airbus 321XLR, the OneSat satellite, the start of the European military aviation programme FCAS and the H145 five-bladed helicopter.

Following the setbacks caused by the coronavirus crisis in 2020, the group is notably considering raising its defence and space division, which was notably affected by the failure to export the A400M military carrier. Airbus also intends to maintain stable relationships with its suppliers.

The Covis-19 pandemic led to a decline in orders in the first quarter and an action plan was therefore put in place, including a one-third pause in industrial production, a reduction in the number of orders and a reduction in the number of orders for the Covis-19 helicopter.700 million reduction in capital expenditure, a postponement and suspension of activities not essential to business continuity and the fulfilment of customer commitments.

The group's 2020 objectives have for the moment been suspended.