LAMA Comment to USTR 2025

March 29th, 2025 | Newsletter

Docket Number: USTR-2025-0001 `Request for Comments to Assist in Reviewing and Identifying

Unfair Trade Practices and Initiating All Necessary Actions to Investigate Harm From Non-

Reciprocal Trade Arrangements’ .

Subject: Comment on Document 2025-03047 (90 FR 10677) – Impact of Steel and Aluminum TariRs

on U.S. Aircraft Manufacturers

Dear ORice of the United States Trade Representative,

On behalf of the Light Aircraft Manufacturers Association (LAMA), we value the leadership in driving

positive policy to the advancement of aerospace and the aviation industry in the United States.

LAMA would like to suggest that some tariRs, while intended to address unfair trade practices, pose

significant challenges to U.S. aircraft manufacturers, particularly those in the general aviation, light

sport aviation and experimental aircraft sectors.

Economic Impact on U.S. Aircraft Manufacturers Approximately 60% of the steel and aluminum

used in the manufacturing of general aviation and experimental aircraft is imported. Even with this,

U.S. exports more aviation products and services than it imports, contributing significantly to the

U.S. economy.

The proposed tariRs would lead to substantial increases in material costs, directly impacting

production expenses. This cost escalation could force manufacturers to raise prices, making U.S.-

produced aircraft less competitive in both domestic and international markets.

Supply Chain Challenges The U.S. exports not only fully assembled aircraft but also a wide range

of aircraft parts and components, which are crucial for the global aviation supply chain.

The U.S. steel and aluminum industries currently lack the capacity to meet the demand of aircraft

manufacturers. The reliance on imported materials is not a matter of preference but necessity. The

tariRs could exacerbate supply chain disruptions, delay production timelines and hinder the ability

of manufacturers to fulfill orders, aRecting our competitiveness in global markets.

Broader Economic Consequences The U.S. leads in aviation-related services, including aircraft

maintenance, repair and overhaul (MRO), as well as aviation training, air traRic control, and

logistical support. The aviation industry is a critical component of the U.S. economy, supporting

thousands of jobs and contributing significantly to GDP.

The U.S. is a leader in aviation innovation, particularly in terms of safety technologies, fuel

eRiciency, and environmental sustainability, which enhance the competitiveness of its products

and services globally. Increased production costs could lead to reduced output, layoRs, and a

decline in the overall economic contribution of the sector. Additionally, the ripple eRects would

extend to suppliers, maintenance providers, and other related industries.

Many countries rely on U.S. aircraft and aviation technology, further reinforcing the U.S. aviation

industry’s strong export performance.

Overall, the U.S. aviation sector remains a global leader, with a robust trade surplus in aviation

goods and services, underpinned by strong manufacturing capabilities and technological

advancements.Recommendation to the U.S. Trade Representative LAMA respectfully recommends that the

Trade Representative consider implementing targeted tariR exemptions or a relief program for

industries heavily reliant on imported materials that have a positive trade balance, such as the

aerospace and aviation. This approach would ensure that eRorts to combat unfair trade practices

do not unintentionally harm critical domestic industries. Alternatively, a consultation process with

key stakeholders in the aviation industry could be created to explore solutions that balance trade

policy objectives with the need to support U.S. manufacturers.

Thank you for the opportunity to provide input on this important matter. I hope that these concerns

and recommendations will be considered as you evaluate the potential impacts of the proposed

tariRs.

Sincerely,

Scott Severen

President, Light Aircraft Manufacturers Association

Download PDF
iv>