Speaking at the A4E Aviation Summit in Brussels on March 27, Ryanair Group Chief Executive Michael O’Leary expressed concerns over the potential fallout of such tariffs, emphasizing that any attempt to bolster U.S. manufacturers by imposing duties on imported aircraft and parts could ultimately be counterproductive.
O’Leary highlighted the intricate nature of global aerospace supply chains, pointing out that a significant portion of Airbus aircraft components are sourced from American manufacturers. Thus, any move to increase costs for the European aerospace giant would inevitably have a ripple effect on U.S. suppliers, potentially triggering what he described as "mutually assured destruction."
Furthermore, Boeing also relies heavily on European suppliers for critical components. If the U.S. government were to impose tariffs on European-manufactured aircraft parts, Boeing’s production costs would likely rise, diminishing its competitive edge in an already fragile market.
The situation could be further exacerbated if the European Union retaliated with its own tariffs on American-made aircraft and parts. Such a move would not only impact U.S. businesses that supply Airbus but could also lead to reduced sales of Boeing aircraft in Europe—a key market for the American aerospace giant. The repercussions would extend beyond Boeing’s headquarters, affecting its global supply chain and workforce.
O’Leary stressed that disrupting aerospace supply chains at this moment would be particularly reckless. Both Airbus and Boeing are already struggling to keep up with aircraft deliveries, leaving airlines worldwide, including those in the U.S., grappling with fleet shortages. Any additional economic strain could worsen the backlog and hinder the recovery of the airline industry.
His remarks came following a recent meeting with Boeing Commercial Airplanes Chief Executive Stephanie Pope in Dublin. According to O’Leary, Boeing does not anticipate the U.S. government moving forward with such tariffs, though he acknowledged the unpredictability of the current political climate.
“None of us know what’s going to happen,” O’Leary remarked. “I don’t think even the people in the White House know what they’re going to do next week or next month.”
Echoing his concerns, Air France-KLM Group Chief Executive Ben Smith emphasized the high level of uncertainty in the global economy, describing the current business environment as “worrisome times.”
The potential ramifications of U.S. tariffs have not gone unnoticed by Airbus either. In an interview with CNBC in February, Airbus Chief Executive Guillaume Faury warned that if tariffs were imposed on its aircraft, the company might prioritize deliveries to non-U.S. customers. He also noted that Airbus’s final assembly lines in the United States could provide some flexibility in mitigating the impact of such duties.
Unlike Airbus, however, Boeing does not have the option to assemble its commercial aircraft outside the U.S., leaving it particularly vulnerable to any trade war escalation.
As uncertainty looms over the global aviation industry, stakeholders on both sides of the Atlantic are bracing for potential disruptions. Whether or not the U.S. government proceeds with these tariffs remains uncertain, but industry leaders are urging caution, warning that the consequences could be severe and far-reaching.