Delta skirts Trump tariffs by sending Airbus jets on world tour

Delta is sidestepping millions of dollars in US tariffs on European jetliners by initially routing them far outside the country to such places as Amsterdam, Tokyo and El Salvador. The US carrier has taken delivery of seven European-built Airbus planes since President Donald Trump’s levies took effect in October 2019. Rather than flying them home as it had in the past, Delta has based the aircraft overseas. The decision, coupled with the definition of new planes in the tariff rules, has kept the jets from being considered imports even though some of them regularly enter the US. Avoiding the tariffs has saved Delta precious cash while customs records show that rival carriers have been charged the duties. “We have made the decision not to import any new aircraft from Europe while these tariffs are in effect,” Delta said. “Instead, we have opted to use the new aircraft exclusively for international service, which does not require importation.” The Delta strategy rests on language that classifies planes as used once they’ve flown for any reason other than testing and delivery. Tariffs on new-plane imports then don’t apply, even if the aircraft are soon flying to the US. While Delta wouldn’t discuss the financial details, the savings are likely to be significant. The implications go far beyond Delta’s bottom line. The airline’s efforts also illustrate how the Trump trade wars have prompted US companies to reconfigure their business practices to avoid tariffs, often in ways that make them less efficient.<br/>