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Airbus seals VietJet deal as hopes rise at air show for end to tariffs
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Airbus seals VietJet deal as hopes rise at air show for end to tariffs
Jun 17, 2025 6:10 AM

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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.

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