Airbus CEO Warns of Increased U.S. Protectionism

As Donald Trump prepares to take office, European aerospace companies, particularly Airbus, are anticipating 'very strong' protectionism from the U.S. under his administration. CEO Guillaume Faury highlighted concerns over supply chain disruptions still lingering from the pandemic, despite robust demand for commercial aircraft and increased defense spending. He warned that potential tariffs could exacerbate economic challenges in Europe, which is already struggling with overcapacity and job reductions in the satellite sector. In the wake of geopolitical tensions and competition from countries like China and India, Faury urged the French government to support research on emissions reduction. Analysts predict a significant likelihood of market corrections due to rising inflation and trade uncertainties, further complicating the outlook for European economic growth. The aerospace sector faces a delicate balance of demand while navigating potential U.S. trade policies that could threaten its stability.