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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.”
President Donald Trump has followed through on his campaign promise to impose certain tariffs. But some were implemented and others called for and then delayed, creating uncertainty about possible widespread ramifications on the aerospace industry.
On February 1, the White House issued an executive order imposing 25% additional tariffs on goods from Canada and Mexico—and both nations vowed to retaliate—but decided to pause implementation for 30 days as negotiations over border security and trade were ongoing. However, the U.S. did carry through on the 10% additional tariffs on products from China, which promptly retaliated with its own levies.
This was followed on February 10 with an executive order to impose a 25% tariff on steel and aluminum products imported into the U.S., citing a desire to bolster domestic steel production and ensure “national security.”
Details on implantation of any of the tariffs were not immediately available. As such, Washington associations were still assessing at press time how these tariffs would impact the industry. However, the associations expressed concern about the underlying difficulties surrounding tariffs, saying they could disrupt a highly regulated industry and hamper jobs along with economic growth.
“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.”
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.
Montreal-headquartered Bombardier held off on providing guidance for this year as it usually does when it releases its year-end results, citing the uncertainty surrounding the tariffs.
“I am very disappointed that we can’t guide 2025 today,” Bombardier president and CEO Éric Martel told analysts when releasing the company’s 2024 year-end results, “but in light of the current tariff threat, not providing guidance is the most responsible and transparent thing for us to do.”
He stressed the need to exercise caution to see how tariffs unfold. “There is a lot at stake for our industry,” Martel said.
He noted that Bombardier has 2,800 U.S.-based suppliers across 47 states that create tens of thousands of U.S. jobs, adding that it would have an equally significant impact on both sides of the border.