Fears trade war will spread to aviation finance

The burgeoning trade war between the US and Europe over steel and aluminium tariffs is raising concerns in the global aircraft leasing industry that tit for tat levies could spread to the booming aviation finance industry. Peter Barrett, CE of SMBC Aviation Capital, warned that the industry was entering new territory after the EU this week confirmed it planned to target E2.8b of US products in retaliation for the US decision to introduce levies on European steel and aluminium imports. “It is very hard to know what is going to happen,” said Barrett. “Aircraft are very visible and valuable traded items across world. If there is a trade war . . . will there be increased tariffs on bringing aircraft into countries? We are thinking about whether this might have an impact on the movement of aircraft around the world.” <br/>