The U.S. has lifted import tariffs on Pilatus aircraft, allowing the Swiss manufacturer to resume deliveries of its PC-12 and PC-24 aircraft to American customers without the punishing 39% duty. Tariffs were also lifted against South Korea and Liechtenstein for aircraft and parts under the 1979 Civil Aircraft Agreement, which allows the duty-free trade in aircraft and parts between 30 member nations. The removal of the tariffs means Pilatus can resume deliveries to the U.S. just as Textron is getting ready to launch its PC-12 look-alike Denali single-engine turboprop.
The tariff was imposed earlier this year and prompted Pilatus to stop deliveries to the U.S. because of the suddenly higher cost. It’s not clear how many aircraft were affected. NBAA President Ed Bolen applauded the news. “NBAA welcomes the return to zero tariffs for aircraft and parts, which will have a significant positive impact on U.S. leadership in global aerospace safety and innovation. These agreements not only reestablish equitable trade relations with the Republic of Korea and Switzerland but also enable the aviation industry to continue its major contributions to U.S. jobs and the economy.”
All it took was for Swiss business execs to give President Trump a gold-plated desk clock, an engraved gold bar, and lots of flattery.
The Pilatus tariff story looks simple, but I’m not so sure. Big tariffs went out, then somehow Pilatus ended up with a clean pass while the rest of Switzerland kept paying. They pushed in Washington, operators spoke up, and the White House grabbed an easy trade win by dusting off a 1979 aviation deal. Meanwhile Swiss watches, med-tech, and machinery are still footing the bill. Aviation always seems to get the soft landing, loud jobs, well connected customers. Maybe it’s all coincidence, maybe not, but it feels like one of those small stories that hints at how things really work.
What you just said Raf. This story demonstrates why tariffs are rightfully the province of congress, not the president, particularly one who operates solely by plucus rectus.