The U.S. Commerce Department wrapped up its investigation into imported commercial aircraft and parts on Thursday, and the verdict is a classic Washington two-step: yes, there's a national security problem, but no, we're not slapping on tariffs right this second.

The investigation, launched last year, found that the U.S. aircraft industry is too dependent on foreign supply chains, which creates national security risks. It also flagged quality control and counterfeiting issues with imported parts. And there's a labor angle: competition from lower-cost foreign manufacturers is forcing U.S. aircraft companies to keep wages low or curb hiring, making jobs in the industry less attractive.

Despite all that, Commerce Secretary Howard Lutnick recommended against immediate tariffs. President Donald Trump instead directed negotiations with trade partners to address the impact of imports on the U.S. commercial aerospace industry. But he also put a clock on it: if no agreements are reached within six months, he could take action unilaterally.

Aircraft Tariffs Stay in Focus

This decision comes amid a broader trade negotiation push. In February, the interim U.S.-India agreement included plans to remove tariffs on aircraft parts and products like generic drugs, gems, and diamonds, while India would get a preferential tariff-rate quota for automotive components, subject to U.S. national security requirements.

Aircraft and parts have largely been tariff-free under the 1979 Civil Aircraft Agreement, which has helped the U.S. aerospace industry maintain a $75 billion annual trade surplus. Trump has made Boeing Co. (BA) aircraft sales a centerpiece of trade negotiations, including a major order from China following his May visit.

Notably, Delta Air Lines (DAL) had previously warned that airplane tariffs could hit ticket prices, aviation safety, and supply chains.