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US Transport Secretary says he wants zero-tariff civil
aviation
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Airbus strikes deal for up to 150 single-aisle jets with
VietJet
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Leonardo says it has bought a European cybersecurity
company
By Joe Brock, Tim Hepher and Giulia Segreti
PARIS, June 17 (Reuters) - Airbus struck a deal
with budget airline VietJet for up to 150 single-aisle
jets at the Paris Airshow on Tuesday, where industry hopes of a
return to tariff-free trade were given a boost by U.S. Transport
Secretary Sean Duffy.
Duffy said he wanted civil aviation to return to a 1979
zero-tariff trade agreement, in one of the clearest signs yet
that the Trump administration might favour such a move.
However, Duffy added that while the White House was aware
that the U.S. is a net exporter in aerospace, it was also
dealing with a complex tariff situation.
U.S. President Donald Trump's 10% tariffs on nearly all
airplane and parts imports are a headache for an industry
already battling supply chain challenges and facing fresh
turbulence from last week's deadly Air India crash and conflict
in the Middle East.
In early May, the U.S. Commerce Department launched a
"Section 232" national security investigation into imports of
commercial aircraft, jet engines and parts that could form the
basis for even higher tariffs on such imports.
Airlines, planemakers and several U.S. trading partners have
been lobbying Trump to restore the tariff-free regime under the
1979 Civil Aircraft Agreement.
On day two of the air show, European planemaker Airbus said
it had signed a memorandum of understanding for VietJet to buy
100 A321neo planes, with the option to buy up to 50 more in
future. The agreement confirmed an earlier Reuters story.
A deal for 150 A321neos could be worth around $9.4 billion,
according to estimated prices provided by Cirium Ascend.
The agreement was the latest in a flurry of business
announced by Airbus at the world's biggest aviation trade fair.
U.S. rival Boeing ( BA ) is expected to have a more subdued
show as it focuses on the probe into last week's fatal crash of
an Air India Boeing 787 and after it racked up huge deals during
Trump's recent tour of the Middle East.
On the defence side of the show, Leonardo chair
Stefano Pontecorvo said the Italian group had bought a European
cybersecurity company to strengthen its position in an area seen
as increasingly important in new combat systems.
He declined to name the company, saying only that the deal
would be announced soon.