Aviation giants in rally against President Trump’s trade policies

TWO OF the major beneficiaries of President Donald Trump’s tax overhaul rallied against his trade policies, lobbying for free markets after tariffs announced by the US escalated tensions with allies.

Planemaker Boeing and American Airlines Group, aviation giants that have both channelled funds from Trump’s tax cuts into their workforces, raised concerns about a trade conflict that could impact the movement of cargo and people.

On Friday, the US imposed tariffs on steel and aluminium from the EU, Canada and Mexico, all of which announced that they would hit back with their own duties.

“We’re fans of global trade and free trade, so we always get concerned when you start to see tensions escalate,” said Doug Parker, American Airlines’ chairperson and chief executive. “It’s certainly the kind of thing that you watch and hope that countries are able to work together and keep global trade flowing.”

American in January joined a tide of companies offering employees $1 000 bonuses to mark the tax overhaul Congress put in place for 2018. Parker voiced his concerns over trade in Sydney, where he’s attending the International Air Transport Association’s (IATA) annual meeting.

Fair trade Boeing, the Chicago-based maker of commercial jets, said at the same meeting it will push for open and fair trade after Trump announced duties on steel and aluminium imports from some of America’s allies on national security grounds – even though the tariffs won’t really hurt the company.

“We’re going to continue to advocate that open and fair trade is the path we’d want to see the market headed,” sales chief Randy Tinseth said in an interview in Sydney. Boeing sources 90 percent of its aluminium from the US, he said.

Earlier this year, China, one of the biggest consumers of Boeing’s planes, threatened penalties on older models of the 737. The tariff threats haven’t been implemented.

The tensions have clouded a benign outlook for the global economy, which is on track to grow at its fastest pace since 2011 this year and next, according to the International Monetary Fund. “The strength of the airlines heavily depends on the fact that borders are open,” Alexandre de Juniac, the chief executive officer of IATA, said yesterday in an interview in Sydney.

The US and Europe, typically closely co-operating trade partners, are also sparring over plane manufacturing after the World Trade Organisation this year found that Airbus had failed to sufficiently roll back subsidies for its two biggest aircraft.