Aviation seems to be mostly spared in the latest tug of war over import tariffs. U.S. Customs and Border Protection issued guidance that exempts civil aircraft and parts from new tariffs imposed last week. The items exempted include “articles of civil aircraft (all aircraft other than military aircraft); their engines, parts and components; their other parts, components and subassemblies; and ground flight simulators and their parts and components of any country.” Those claiming the exemptions will be required to keep records showing that items ended up in aviation-related gear. Most aircraft manufacturers use parts made in dozens of different countries, and tariffs increase the costs of those parts.
The National Air Transportation Association said that while it was glad the latest tariff news was positive for aviation, it’s still pulling for a more lasting free trade measure for aviation goods. “NATA has advocated for a return to the longstanding Agreement on Trade in Civil Aircraft, which removed international tariffs for the civil aviation sector in 1979 and led to sustained growth and success for U.S. aviation while protecting global aviation standards,” the association said in a statement. The latest tariffs were announced after the Supreme Court struck down those that were implemented based on a perceived national security threat through the International Emergency Powers Act. In response, the administration announced 10% tariffs (potentially increasing it to 15%) on most imports under the Emergency Economic Powers Act, but they can only be in effect for 150 days without congressional approval.
