AIA chief concerned about retaliation over new tariffs

By Justin Doubleday / May 31, 2018 at 4:18 PM

The Aerospace Industries Association is concerned about President Trump's newly announced tariffs on steel and aluminum produced by the European Union, Canada and Mexico, the organization's chief executive said today.

"We understand the focus on fair trade that's driving some of these actions, but we are on record and our position hasn't changed that we have concerns about tariffs for a number of reasons," Eric Fanning told reporters at AIA's headquarters in Arlington, VA, today. "Its impact on the global supply chain and what that can mean for our companies. Certainly what escalation might mean in terms of retaliation."

Trump announced he's imposing the tariffs -- which are 25 percent on imported steel and 10 percent on imported aluminum -- under a law that allows such actions for national security purposes.

European and Mexican officials subsequently condemned the U.S. decision, promising retaliation and efforts to thwart the U.S. claim of a national security need to protect its industries.

Meanwhile, the Pentagon did not take a position when asked about the tariffs today, although Defense Secretary Jim Mattis has previously said the tariffs would harm national security by impairing relationships with allies. 

Fanning said the U.S. aerospace and defense industry represents about 2.4 million jobs and is heavily reliant on exports.

"We're concerned about the impact these specific tariffs might have, and we're more concerned about what retaliation might mean for the industry," Fanning said.

AIA has communicated its concerns to the White House, he confirmed.

"I think we can focus on fair trade and free trade," Fanning said. "I don't think it has to be an either/or."

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