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Airbus Lands VietJet Jet Deal as Tariff Talks Loom

Christopher Yarborough by Christopher Yarborough
June 17, 2025
in Economics
Airbus Lands VietJet Jet Deal as Tariff Talks Loom

The Paris Airshow brought Airbus a significant victory through its announcement of a deal with VietJet for up to 150 A321neo aircraft while global aviation leaders watched carefully for signs of tariff relief. The memorandum of understanding signed on Tuesday includes 100 firm orders with an option for 50 more and could be worth $9.4 billion based on list prices.

The agreement emerged during a period when U.S. Transport Secretary Sean Duffy expressed his support for reviving the 1979 zero-tariff civil aviation pact. The White House faces a difficult trade situation according to Duffy because President Trump has implemented broad import duties.

The aerospace industry demands the administration to eliminate 10% tariffs on aircraft and parts because the ongoing “Section 232” national security probe may impose additional levies.

The airshow faces multiple challenges because of supply chain problems and the fatal Air India jet accident and ongoing Middle East tensions. Boeing maintained a subdued display at the event because the company continues to face scrutiny following the plane crash.

Rolls-Royce confirmed its plans to enter the narrow-body jet engine market through potential partnership opportunities. According to CEO Tufan Erginbilgic the arrival of a new aircraft remains unlikely before 2035.

Tags: AirbusVietJet
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