MIflyer12
Posts: 6050
Joined: Mon Feb 18, 2013 11:58 pm

Re: How could airbus get around the 10% WTO Tariffs?

Wed Oct 23, 2019 12:22 am

mjoelnir wrote:
Perhaps the best way is, to put the tariffs on the USA wares and use them to pay the 10 % tariff of airplanes into the USA.


That statement reflects a fundamental misunderstanding of how tariffs work and are paid. Tariffs are paid by the importer. That might be Delta, if Delta buys directly from Airbus SE. It might some some local American Airbus entity (Airbus USA?) if there is a transfer sale from Airbus SE to Airbus USA (then to Delta). Tariffs are paid TO the government. If an EU government turns around and hands tariff moneys to Airbus -- that's just more illegal aid.

Reuters had a very good timeline of EU aid to Airbus and the progression through the WTO. The U.S. case against EU aid to Airbus has gone all the way through findings and WTO approval of counter-veiling tariffs. The EU case against Washington State aid to Boeing has not. There were years and years of determinations by the WTO that some forms of EU aid to Airbus were illegal.

https://www.reuters.com/article/us-wto- ... SKBN1WH198

To the OP's question: Aircraft assembled in Mobile are tariff-exempt as a consideration to the ~1,000 Alabama employees, not because the aircraft there assembled have enough American content (or North American content under NAFTA) to be considered American-made. Ten guys just painting fully-assembled A350s in Mobile wouldn't get the same courtesy. Tariff classifications can be very complicated - and surgically applied. Any clever idea by Airbus will be undone by the stroke of a pen. Now, if Airbus wants to invest $1.5 Billion to start an A330neo line for the 33 more DL aircraft on order I'm confident those could also be tariff-exempted.
 
leghorn
Posts: 940
Joined: Sun Jan 22, 2017 9:13 am

Re: Updated: US to Impose Tariffs on EU Goods After WTO’s Airbus Ruling

Wed Oct 23, 2019 4:13 pm

M O'L says he expects Boeing to eat any tariff on 737 orders.

Boeing going to Govt. for support of their interests has become like a small businessman going to Mafia for protection.
They might give you "protection" but their interests and your interests do not align.
Current Government just want headlines to show the uncritical public they are big and tough and have power unlike the weak guys in the last Administration or the opposition.
You'll get enough dumb voters thinking the current regime are guarding their interests. If you are in the business of getting re-elected so that you can control the purse strings that is all you need. You don't need to produce positive results for the U.S. economy.

Last time I heard the UAW workers are on obscene packages so that is just protectionism and with the whole gamut of social protection measures across Europe it isn't exactly like the Europeans have a competitive labour or regulatory environment. They just make cars and planes and what not that people want to buy and are willing to pay a premium for them.

I think Boeing have learnt that running to Government for protection is the last thing they should be doing until the current Administration leaves office. They've had A220 driven in to the arms of Airbus, their European customers telling them that they'll be paying the tariff if it is introduced...a tariff that wasn't going to be introduced until U.S. introduced one. This administration is not their friend.
 
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Erebus
Posts: 1061
Joined: Tue Oct 20, 2015 2:40 am

Re: How could airbus get around the 10% WTO Tariffs?

Wed Oct 23, 2019 5:14 pm

MIflyer12 wrote:
That statement reflects a fundamental misunderstanding of how tariffs work and are paid. Tariffs are paid by the importer. That might be Delta, if Delta buys directly from Airbus SE.


This is essentially punishing the US airlines instead of Airbus/EU. They are committed by contracts to buy them, now at higher cost but Airbus and EU don't get to foot the bill. Or does Delta get a rebate for the tariffed amount from Airbus?
 
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scbriml
Posts: 17645
Joined: Wed Jul 02, 2003 10:37 pm

Re: Updated: US to Impose Tariffs on EU Goods After WTO’s Airbus Ruling

Thu Oct 24, 2019 7:34 am

Erebus wrote:
Or does Delta get a rebate for the tariffed amount from Airbus?


I imagine it would be fairly trivial for Airbus to apply additional discounts to services, parts and training if necessary.
Time flies like an arrow. Fruit flies like a banana!
There are 10 types of people in the World - those that understand binary and those that don't.
 
StarAC17
Posts: 3666
Joined: Thu Aug 07, 2003 11:54 am

Re: Updated: US to Impose Tariffs on EU Goods After WTO’s Airbus Ruling

Thu Oct 24, 2019 9:57 pm

leghorn wrote:
Last time I heard the UAW workers are on obscene packages so that is just protectionism and with the whole gamut of social protection measures across Europe it isn't exactly like the Europeans have a competitive labour or regulatory environment. They just make cars and planes and what not that people want to buy and are willing to pay a premium for them.



If European products are of high quality and the labour is expensive (which it is) and people still want to buy it and pay the associated premium for it then by definition that is a competitive product.
Engineers Rule The World!!!!!
 
Subwayfan1998
Posts: 27
Joined: Fri Oct 25, 2019 9:06 pm

Re: Updated: US to Impose Tariffs on EU Goods After WTO’s Airbus Ruling

Fri Oct 25, 2019 10:12 pm

This will be a TOTAL Economic Disaster, like this kind of Tariffs had causes the Great Depression.
 
ItnStln
Posts: 32
Joined: Mon Mar 11, 2019 1:47 pm

Re: Updated: US to Impose Tariffs on EU Goods After WTO’s Airbus Ruling

Sat Oct 26, 2019 11:12 am

Subwayfan1998 wrote:
This will be a TOTAL Economic Disaster, like this kind of Tariffs had causes the Great Depression.

No it won't, there's no need to fear monger.

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