Pilatus has halted shipments of its popular PC-12 turboprop and PC-24 business jet models to the U.S. because of a 39% tariff imposed by the Trump administration on all products imported from Switzerland. “The new customs tariff imposed by the U.S. authorities represents a significant competitive disadvantage for Pilatus,” the company said in a statement. The company suggested the suspension may be temporary and that it’s working with American customers on navigating the extra charge. The U.S. accounts for 40% of Pilatus sales.
Depending on the long-term impact of the tariffs, this could be a major boon to Textron’s entry into the low-wing turboprop single market. The company is on the cusp of certifying its new Beechcraft Denali, which will be a direct competitor to the PC-12. The FAA certified the aircraft’s revolutionary 3-D printed GE Catalyst engine earlier this year, and the Denali has been making the show circuit. It was directly across the main street of AirVenture from the Pilatus display this year. There really is no direct competition for the PC-24 because of its unique ability to land on unimproved runways.
This is ridiculous and anti-free market. Pilatus and Cessna should be allowed to compete head-to-head. American companies in established industries don’t need government assistance. It’s Econ 101.
And in return, Switzerland will likely cancel its $9 billion order for L F-35 Lighting II procurements, joining Spain and likely Canada and other nations, which will drive up the cost for those aircraft to the remaining buyers including the U.S. military.