US warned EU about threat of trade conflict over Airbus

The US warned the European Union about a possible violation of trade agreements due to record financing of the aircraft manufacturing corporation Airbus by the European Investment Bank (EIB). Washington demands that the lending terms be disclosed, as it suspects that such support may give the European manufacturer unfair competitive advantages over America's Boeing.

This was stated on October 26 by US Trade Representative Jamieson Greer, reports the Office of the US Trade Representative (USTR).

The cause for the new escalation was the decision of the European Investment Bank to allocate Airbus a financial package of €3 billion (approx. $3.4 billion). It was approved at the end of June 2026, and the first loan of €1 billion has already been signed.

This is the largest corporate financing program in EIB history. The funds are designated for research, development, and implementation of new Airbus technologies until 2030. This concerns projects in France, Germany, and Spain, including civil aviation, defense industry, and security systems.

The American side claims that it has not yet received information about the loan terms, despite repeated requests. Washington wants to find out whether the financing corresponds to market conditions, as required by the agreements between the US and the EU regarding support for large civil aircraft manufacturers.

Greer reminded that for decades France, Germany, and Spain provided state support to Airbus, which, according to Washington's assessment, created unequal competitive conditions for American aircraft manufacturers.

In 2021, the US and the European Union agreed to suspend mutual tariffs imposed after years of disputes over subsidies to Airbus and Boeing. One of the conditions of the truce was the obligation of both parties to ensure financing of aircraft building companies on market principles.

This agreement was extended in the summer of 2026. However, almost simultaneously, the EIB announced a record lending program for Airbus, which caused concern for the American administration.

Greer warned that the situation creates significant uncertainty for transatlantic trade in the aviation industry. According to him, the issue needs to be resolved as soon as possible to avoid violation of the agreements on financing of civil aircraft manufacturers.

Meanwhile, the European Investment Bank denies providing Airbus with special privileges. The bank emphasizes that lending to businesses is its ordinary activity, and the respective loan involves interest payments.

Airbus itself also rejected assumptions about the non-market nature of the financing. As reported by Financial Times, the company called the deal a standard corporate loan, similar to those it has made before.

The corporation explained that raising funds is necessary to diversify funding sources and manage complex international production and supply chains. Airbus also stated its readiness to provide additional information to government agencies.

The dispute revives one of the longest trade conflicts between the US and the European Union. The standoff over state support for Airbus and Boeing lasted about 17 years and was accompanied by mutual lawsuits to the World Trade Organization and the introduction of additional tariffs on goods totaling billions of dollars.

So far, Washington has not announced the resumption of tariffs and has not established a fact of breach of the agreement. Further developments will depend on disclosure of Airbus financing terms and results of consultations between the American and European sides.

Based on materials from: Office of the US Trade Representative, European Investment Bank, Financial Times