US warns EU loan to Airbus jeopardises aircraft financing truce

The United States has raised fresh concerns about a substantial European Union loan to Airbus, warning that the financial support threatens to destabilise a hard-won international accord on aircraft financing arrangements.

US Trade Representative Jamieson Greer expressed frustration that his office had not received comprehensive information regarding the €3.2 billion loan facility extended to the European aircraft manufacturer in June. The lack of transparency regarding the funding arrangement has prompted Washington to question whether the arrangement complies with existing trade agreements governing such financial support.

The concerns mark a potential flashpoint in transatlantic relations at a time when both regions have sought to manage trade tensions. Aircraft financing has historically been a contentious issue between the US and EU, with previous disputes resulting in retaliatory tariffs on goods ranging from aircraft components to agricultural products.

US officials have indicated that such state support for aircraft manufacturers could violate provisions of the existing trade truce, which was designed to prevent competitive distortions in the global aerospace sector. The statement signals that Washington intends to closely monitor how the loan is structured and deployed by Airbus operations.

Brussels has not yet formally responded to the American warnings regarding the loan arrangement.