SEO Title
Analyst Report Spotlights Harm of Tariffs to Business Aviation
Subtitle
Nearly 60% of operators surveyed cited tariff uncertainty as a reason to delay purchases
Subject Area
Teaser Text
Report from RVA underscores importance of free trade to U.S. business aviation market.
Content Body

Free trade that is anchored in multilateral agreements has been a cornerstone of U.S. strength in business aviation, but any deviation toward tariffs threatens to undermine both U.S. national security and economic vitality, cautions a report released today by industry consultant and data specialist Rolland Vincent Associates (RVA).

That report, “Back to the Future: In Support of a Zero-Tariff Marketplace for Business Jets,” delves into the dynamics of the business aircraft manufacturing sector and the harm that comes from new or potential tariffs. It also explores potential U.S. national security concerns under the U.S. Department of Commerce’s Section 232 investigation launched in May.

“We urge policymakers to oppose new tariffs, reaffirm multilateral commitments, and promote data-driven policies that have set the stage for U.S. leadership in civil aircraft development and manufacturing,” RVA president Rollie Vincent said in releasing the report. “Business aviation thrives on international collaboration, and a stable, zero-tariff trade environment has fueled decades of investment, innovation, and high-paying jobs in America. The U.S. business jet manufacturing industry consistently generates a significant trade surplus and is a model for other sectors to emulate.”

While often overshadowed by the large commercial aircraft sector, business aviation plays a pivotal role in the economy and connectivity, supporting 2.5 million annual flights between more than 4,000 U.S. airports, the report points out, adding that this enables business activity in urban and rural markets.

The U.S. accounts for the majority of business jet and engine production, with companies including Gulfstream, Textron Aviation, GE Aerospace, Honeywell Aerospace, and Williams. Furthermore, foreign manufacturers such as Embraer, Dassault, Pilatus, and Honda Aircraft have substantially invested in the U.S. market. Collectively, 80% of new business jets are assembled in the United States-Mexico-Canada Agreement (USMCA) zone, and all business jet engines are sourced from the U.S., Canada, or allied European regions, the report notes. In 2024, the U.S. enjoyed a 6-to-1 trade value surplus in civil aircraft and employed hundreds of thousands of people in high-paying, value-adding jobs.

Trade frameworks such as USMCA or the global Agreement on Trade in Civil Aircraft have created a stable, rules-based international environment that has fostered cross-border investment and enabled the market to flourish in the U.S. Further, RVA highlighted the security of this trade, finding “no evidence of weaponized trade behavior or strategic leverage being exercised in this sector.”

However, rather than protecting domestic capacity, trade barriers would penalize U.S. manufacturers relying on global outsourcing that cannot be easily or quickly changed. Such levies raise costs and slow production. And the threat of the tariffs has created uncertainty in the market, RVA said, noting that 59% of business jet buyers have cited this tariff uncertainty as a reason to delay aircraft purchases.

“Our message to policymakers is clear: don’t disrupt what works. Free and fair trade has helped cement America’s leadership in business aviation,” added Dean Roberts, RVA v-p of strategy, sustainability, and development. “We urge the preservation of conditions—open markets, stable rules, and trusted partnerships—that have fostered U.S. global leadership.”

Expert Opinion
False
Ads Enabled
True
Used in Print
False
Writer(s) - Credited
Kerry Lynch
Newsletter Headline
RVA Report Spotlights Harm of Tariffs to Bizav
Newsletter Body

Free trade that is anchored in multilateral agreements has been a cornerstone of U.S. strength in business aviation, but any deviation toward tariffs threatens to undermine both U.S. national security and economic vitality, cautions a report released today by industry consultant and data specialist Rolland Vincent Associates (RVA). That report, “Back to the Future: In Support of a Zero-Tariff Marketplace for Business Jets,” delves into the dynamics of the business aircraft manufacturing sector and the harm that comes from new or potential tariffs.

“We urge policymakers to oppose new tariffs, reaffirm multilateral commitments, and promote data-driven policies that have set the stage for U.S. leadership in civil aircraft development and manufacturing,” RVA president Rollie Vincent said. “Business aviation thrives on international collaboration, and a stable, zero-tariff trade environment has fueled decades of investment, innovation, and high-paying jobs in America.”

While often overshadowed by the large commercial aircraft sector, business aviation plays a pivotal role in the economy and connectivity, supporting 2.5 million annual flights, the report points out. In 2024, the U.S. enjoyed a 6:1 trade value surplus in civil aircraft. 

However, trade barriers would penalize U.S. manufacturers relying on global outsourcing that cannot be easily or quickly changed. RVA noted that 59% of business jet buyers have cited the uncertainty surrounding tariffs as a reason to delay aircraft purchases.

Solutions in Business Aviation
0
AIN Publication Date
----------------------------