Potential Tariffs Weigh Upon Aviation Industry

In the early days of President Donald Trump’s second administration, a cloud of uncertainty surrounds the aviation industry as it seeks to understand what implications tariffs may have, including on the manufacture of aircraft and engines, aircraft purchase/sales transactions, and aircraft/engine-related services. The White House announced plans to impose a 25% additional tariff on imports from Canada and Mexico, which is paused until March 4, 2025, and has already instituted 10% tariffs on all imports from China. In response, foreign governments have begun to explore their own retaliatory measures.

Some industry stakeholders have begun to respond to potential tariffs. For example, foreign aircraft manufacturers—such as Airbus and Bombardier—have signaled that tariffs on the European Union and Canada respectively would mean additional costs being passed on to their U.S.-based customers. Aircraft owners and operators must also be aware of the impact that tariffs may have on the cost of internationally sourced aircraft parts, equipment, and services.

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