US official warns EU Airbus loan puts trade deal at risk

US Trade Representative Jamieson Greer expressed concern that his office had received “no details about this loan” and pressed for the situation to be “resolved as soon as possible.” — AFP pic

First Published: Tuesday, 27 Oct 2026 7:34 PM MYT

SAN FRANCISCO, Oct 27 — A tariff truce between the European Union and United States is potentially at risk due to a multibillion-dollar loan approved by the bloc’s investment bank for Airbus this summer, President Donald Trump’s top trade official said yesterday.

US Trade Representative Jamieson Greer expressed concern that his office had received “no details about this loan” and pressed for the situation to be “resolved as soon as possible.”

“I had sincerely hoped that trade-distorting European subsidies to Airbus were a thing of the past,” Greer said in a statement. The EU has rejected the claim.

“This situation injects substantial uncertainty into transatlantic trade in the aerospace sector,” he continued.

In June, the European Investment Bank (EIB) said it would provide Airbus with a record €3 billion (RM13.7 billion) in financing to boost its research and development.

An EU spokesperson said Tuesday Brussels remained “fully committed” to a 2021 deal and the financing was “fully in line” with the agreement with Washington.

Under the deal, the two sides vowed any financing for the production or development of large civil aircraft would be provided on market terms.

“The loan supports a broad, multi-year research and innovation programme across commercial aviation, defence and security. It is not launch aid for a specific new aircraft programme,” the spokesperson said in a statement.

“The European Commission is in close contact with USTR on the terms of this loan and will provide all necessary information,” the spokesperson added.

The deal came after the United States and European Union had been squabbling over alleged unfair trade practices since 2004, with both sides claiming the other provided support to private companies, such as aircraft manufacturers Boeing and Airbus, in violation of international trade agreements.

The 17-year-long feud saw the United States and EU impose tariffs on billions of dollars worth of each other’s products.

But in 2021, a five-year deal was agreed between both sides under former president Joe Biden’s administration.