US closes Section 232 probe on aircraft, engines — chooses negotiations over tariffs

The Trump administration has concluded its Section 232 investigation into imports of commercial aircraft, jet engines and related parts, but opted to hold off on imposing immediate tariffs. Instead, it will pursue negotiations with key trading partners before deciding on any further action.

Trump signed a proclamation Thursday (local time) directing the secretary of commerce and the United States Trade Representative to negotiate relevant agreements with trading partners, in response to concerns that imports of commercial aircraft, jet engines and related parts could undermine US national security.

The Commerce Department had previously conducted the investigation under Section 232 of the Trade Expansion Act, examining the national security implications of those imports, and submitted a report to Trump.

Section 232 of the Trade Expansion Act allows the president to impose tariffs or restrict imports when certain goods are deemed a threat to national security. The Trump administration has used the provision to levy steep tariffs on steel, aluminum, automobiles and auto parts.

According to the White House, Commerce Secretary Howard Lutnick concluded in the report that imports of commercial aircraft, jet engines and related products posed a risk to US national security.

However, Lutnick recommended pursuing further discussions and negotiations with major trading partners before resorting to immediate tariffs.

Trump accordingly directed the Commerce Department and the USTR to begin the relevant negotiations.

The White House said that if no agreement is reached within 180 days of the proclamation taking effect — or if any agreement is not properly implemented or proves ineffective — the president may take additional measures to address the national security threat.

The decision averts an immediate tariff on aircraft and aviation parts, but leaves Washington room to impose duties at any time, using the threat of tariffs as leverage in the negotiations.