US Grants Tariff Exemption to UK Aerospace Industry

The United States has agreed to exempt the United Kingdom’s aerospace sector from new import tariffs, allowing companies like Rolls-Royce to sell aircraft engines and parts to Boeing without additional duties. U.S. Commerce Secretary Howard Lutnick announced the decision during a media briefing on May 8 from the Oval Office, noting that Rolls-Royce engines and similar UK-made components will enter the U.S. tariff-free.

“The UK sells Rolls-Royce engines to Boeing. We’ve agreed to let Rolls-Royce engines and those kinds of plane parts come over tariff-free,” said Lutnick. The exemption is part of a broader U.S.-UK tariff agreement reached last week that introduces a mutual 10% tariff on most goods, while sparing aerospace components.

The announcement comes as International Airlines Group (IAG) confirmed a major order for 32 Boeing 787-10 aircraft and exercised options for six Boeing 777-9s for its British Airways unit. Rolls-Royce engines are used in many Boeing aircraft, including the 787 Dreamliner and earlier 777 models.

The UK aerospace sector generates approximately GBP 40 billion (USD 53 billion) annually and supports around 450,000 jobs. The U.S. had previously investigated whether foreign-made aircraft parts posed a national security risk, but the recent agreement signals a shift in policy.

Neither Rolls-Royce nor the U.S. Department of Commerce offered further comment.

Separately, the U.S. and China have agreed to reduce tariffs, easing tensions that had delayed new Boeing aircraft deliveries to Chinese airlines. U.S. tariffs will drop to 30%, while China will reduce its rate to 10%.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com