The EU will protect Airbus in the US trade agreement, while Ferrari will face losses

The European Union is in urgent negotiations with the United States over a trade agreement, focusing on protecting key industries from large-scale tariff impacts. As the flagship enterprise of the European aerospace manufacturing industry, Airbus has become a priority target for EU protection. The protection measures for the automotive industry may be based on a "countervailing mechanism," benefiting only European car manufacturers with factories in the U.S. On July 9th, according to CCTV reports, German Vice Chancellor Olaf Scholz stated that the EU hopes to reach a tariff agreement with the U.S., but this agreement must be fair; otherwise, the EU will take countermeasures against the U.S. Reports indicate that the European Commission is close to reaching a preliminary agreement with the U.S. to exempt commercial aircraft from certain tariffs, which would benefit Airbus. Additionally, reports indicate that both sides are discussing a "countervailing mechanism," allowing European car companies with factories in the U.S. to export a certain number of cars tariff-free. This mechanism will benefit German car manufacturers such as BMW, Mercedes-Benz, and Volkswagen, which have factories in the U.S. Porsche and Ferrari, however, do not operate factories in the U.S. and import all their cars from Europe, thus cannot benefit. Analysts believe that automotive tariffs have increased costs and complexity for European manufacturers, who rely on the lucrative U.S. market to sell large and high-priced SUVs. The situation is particularly severe for German companies, which are experiencing a continuous decline in market share in China and urgently need to protect their position in the U.S. market. Wall Street Journal previously mentioned that Trump announced the implementation of reciprocal tariffs starting August 1. If the EU cannot reach a preliminary trade agreement before August 1, tariffs on goods exported to the U.S. will soar from 10% to 50%. Currently, U.S. tariffs cover 70% of EU exports to the U.S., valued at approximately €380 billion. Airbus Gains Priority Protection Status The EU prioritizes the protection of Airbus as a key focus of trade negotiations. Reports indicate that EU industry chief Stephane Sejourne stated that Airbus should not be affected by Boeing's "unfair competition" due to the additional 10% tariff. He stated: If we do not rebalance, we will let some leading industries lose protection, so doing this (exempting Airbus from tariffs) is in the economic interest. Aviation analyst John Strickland pointed out that Airbus "is absolutely the flagbearer of the European aircraft manufacturing industry." He stated: (Passing tariffs onto customers) could have a significant suppressive effect on demand, thereby affecting Airbus's overall financial situation. Airbus's global production layout provides it with a competitive advantage. The company has its headquarters and final assembly line in Toulouse, France, major facilities in Hamburg, Germany, and factories in Tianjin, China, Mobile, Alabama, and Mirabel, Canada. This allows Airbus to sell locally manufactured aircraft to customers in the U.S. and China, while Boeing only produces in the U.S., lacking the flexibility to respond to global tariffs. The U.S. side also seems to have shown some flexibility. At last month's Paris Air Show, U.S. Secretary of Transportation Sean Duffy stated that he supports returning to the trade agreement terms from 1979, which exempted cross-border trade tariffs on aircraft and parts. He acknowledged that this long-standing agreement has created a trade surplus for the United States