Story ID: 
Tariffs Threat Rippling Throughout Aviation Industry
By: Kerry Lynch
Caption: Industry believes tariffs apply to aviation products despite earlier trade agreements
Word Count: 657
The aviation community is continuing to determine the extent of the ramifications of the rollout of tariffs in the U.S. and retaliatory actions of other nations, but concerns have spread globally throughout the industry.  
Newly implemented tariffs included an additional 25% levy on most goods from Canada and Mexico and a 10% tariff on energy products from Canada. In addition, the U.S. imposed another 10% tariff on certain goods from China alongside the previous 10% already imposed on products such as electronics. All three nations are retaliating. Separately, the U.S. imposed and/or increased the tariffs on aluminum and steel imports to 25%.
Despite earlier trade agreements that shielded the aerospace industry from previous tariffs, aircraft and their components appear to be covered by the newest round, industry groups believe. Still unclear is the compounding effects of components that may cross back and forth between borders as they are completed and/or repaired.
But industry groups are alarmed because of the complex, global nature of the industry, where aircraft are designed to the capabilities of and certified with various large components, and making a change is not a possible short-term—or even long-term, in some cases—option. Textron Aviation and Dassault exemplified that when they each were forced to shelve new aircraft designs after the selected Safran Silvercrest powerplant encountered issues.
Bombardier earlier had put off the release of its 2025 guidance as it awaited clarity on the full extent of the tariffs.  This week, the company was still evaluating the situation—which multiple sources note remains fluid—and said it stood by its earlier comments that tariffs would harm both sides of the border. “There is a lot at stake for our industry,” Bombardier president and CEO Éric Martel had warned, noting that Bombardier has 2,800 U.S.-based suppliers across 47 states that create tens of thousands of U.S. jobs. “Over the years, Bombardier has created a reciprocal trade balance with the U.S. that can be demonstrated where both we and the U.S. have an equal win. This industry has been built through decades of collaboration,” he said.
The International Association of Machinists and Aerospace Workers (IAM) international president Brian Bryant and Canadian general v-p David Chartrand, meanwhile, yesterday jointly condemned the tariffs, calling the decision to move forward with them reckless. “This harmful action threatens jobs, raises prices, and undermines the long-standing economic partnership between the United States and Canada,” they said, calling it an unjustified attack on a trusted ally.
Across the Atlantic, leaders at both Dassault and Airbus have voiced concerns that these tariffs could spread to Europe. Airbus CEO Guillaume Faury previously told CNBC that his company may prioritize non-U.S. suppliers, while Dassault Aviation chairman and CEO Éric Trappier on Wednesday morning warned that it is reassessing plans to hire across the group because “we don’t know what will happen in terms of tariffs, and what could happen [for Falcon deliveries] in the U.S.”
The General Aviation Manufacturers Association has also warned: “Given the global nature of the aviation manufacturing industry, these proposed tariffs, as well as potential reciprocating tariffs, could have an enormous impact with many unintended consequences on the industry.”
In the U.S., the association noted, fixed-wing manufacturers exported 490 piston, turboprop, and jet airplanes in 2024, valued at $4.8 billion. This represented 31.2% of all U.S. general aviation manufacturer billings.
“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 had stated earlier. NBAA has planned a webinar for 1 p.m. on Tuesday to delve into the issue.
In Canada, meanwhile, Aéro Montréal is surveying its members to assess the full impact of the tariffs.