Bizav Groups Fear ‘Profound’ Disruptions with Tariffs
GAMA, NBAA said tariffs could have lasting effect
Aircraft and gas-turbine engines appear to qualify for the limited pause on tariffs. © Pratt & Whitney Canada

Business aviation advocates welcomed the 30-day pauses on the 25% additional duties planned for Canadian and Mexican products and the retaliatory actions from the two nations. However, industry associations expressed concern about the underlying difficulties surrounding tariffs, saying they could disrupt a highly regulated industry and hamper jobs along with economic growth.

The three countries agreed yesterday to temporarily hold off on such actions as dialogues continue surrounding U.S. border security and trade concerns. However, the White House moved forward with 10% additional tariffs on goods from China, and Chinese officials planned their own levies in response.

Both NBAA and GAMA released statements discussing the importance of the business aviation industry, noting that the industry supports more than a million jobs and nearly $250 billion in economic development. Industry exports amounted to 490 piston, turboprop, and jet airplanes, representing about 24.6% of aircraft produced and valued at $5.2 billion, GAMA pointed out.

“Critical to this essential industry is a complex, highly regulated global supply chain, supported by a number of bilateral agreements that are required to meet stringent safety standards, while ensuring the reliable flow of highly specialized goods,” NBAA said. “Disruptions to this system have profound consequences, and workarounds that meet the exacting regulatory requirements take months or years to establish—challenges clearly demonstrated during the Covid pandemic.”

GAMA agreed: “Tariffs would affect the intricate and very complex global supply chain that can take years to establish given that it relies on suppliers with unique capabilities that are highly regulated and therefore cannot be easily replaced.”

Even where alternative suppliers may exist, manufacturers cannot quickly shift to different sources without FAA regulatory approval, compromising contracts and potentially affecting quality, GAMA added. Further, the association noted that tariffs could jeopardize the viability of domestic MROs that may need to import parts.

“It is vital to recognize that U.S. aviation manufacturing is in a global leadership position. This position can be improved by government policies and action focused on strengthening aviation safety agreements, policies, and investments to bolster innovation, as well as measures to address specific aviation supply chain challenges,” the association asserted.

“We welcome the administration’s decision to pause the tariffs on Canada and Mexico, so that their implications can be fully understood,” NBAA further said. “Equally important, we look forward to working with the administration on policies that foster the growth of industries, including business aviation, that are key to preserving our nation’s strength in the global arena.”