US warns $3.4 billion Airbus loan threatens aircraft trade truce

The US has warned that European financing for Airbus could threaten its aircraft trade truce with the European Union, saying officials still have not received details of the deal despite repeated requests.

US Trade Representative Jamieson Greer raised the issue in an October 26, 2026, statement challenging the European Investment Bank’s support for Airbus. The bank approved financing of up to €3 billion, approximately $3.4 billion, earlier this year.

“This situation injects substantial uncertainty into transatlantic trade in the aerospace sector,” Greer said. He urged the EU to resolve the issue quickly to avoid violating the agreement.

Airbus defended the loan, telling Reuters it was a “standard corporate financing facility” comparable to commercial loans it had previously arranged. A spokesman said the company was willing to share more information with governments and was working with the relevant authorities.

The dispute concerns whether Airbus received financing on terms that give it an unfair advantage over Boeing. Under the aircraft agreement, Washington and Brussels committed to providing financing for large commercial aircraft development and production on market terms.

The EIB announced the Airbus financing package on June 29, 2026. An initial €1 billion loan was signed as part of the broader €3 billion commitment, the largest corporate financing package the bank had approved.

The money is intended to support Airbus research and development in France, Germany and Spain across commercial aviation, defense and space.

Greer accused European governments of using support for Airbus to disadvantage US aerospace companies and workers. He said Washington had agreed to suspend tariffs in exchange for a commitment to market-based financing, but still lacked the information it needed about the EIB deal.

Boeing had asked the Trump administration in July 2026 to seek more information about the loan, Reuters reported. The EIB has denied offering unusual support, while Airbus Chief Financial Officer Thomas Toepfer previously said the financing was obtained at market rates.

The US and EU agreed in June 2021 to suspend tariffs arising from their aircraft subsidy dispute for five years. They also established a working group to address disagreements and committed to greater transparency in government-funded aircraft research.

That agreement required more than commercial terms for loans. Both sides also pledged to avoid research funding or other manufacturer-specific support that would harm the other side’s aircraft industry.

The tariff pause was extended this summer, according to Greer’s statement. Washington is now seeking details of the Airbus financing to determine whether Europe is honoring its commitments under the agreement.

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