Aviation groups are breathing a collective sigh of relief as trade wars with Canada and Mexico were averted, at least for the next 30 days. President Donald Trump announced Monday that he was postponing the imposition of 25 percent tariffs on goods imported from both countries in return for assurances both countries would improve border security against drug smuggling and illegal immigration. As with many industries, the tariffs would have had a major impact on aviation. Canada has several airframers, including Bombardier and De Havilland Canada, and also produces myriad parts, including hundreds of engines, for OEMs. Mexico also makes parts and subassemblies for new aircraft.
NBAA was among the industry groups to issue a statement that applauded the pause in the tariff action saying it is reliant on a complex system of international agreements that ensure safe production of aviation products. “Disruptions to this system have profound consequences, and workarounds that meet the exacting regulatory requirements take months or years to establish – challenges clearly demonstrated during the COVID pandemic,” the group said in a statement. “As with the pandemic, NBAA has concerns regarding tariffs, or anything else that could disrupt the industry’s unique supply chain, and the jobs, economic growth, manufacturing leadership and innovative edge that depend on it.”
The General Aviation Manufacturers’ Association chimed in with a similar argument against tariffs and issued a statement before the reprieve. “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,” the organization said. It noted that almost half the total revenue from GA manufacturers comes from exports, about $5.2 billion in 2023. “Tariffs would affect the intricate and very complex global supply chain that can take years to establish given that it relies on suppliers with unique capabilities that are highly regulated and therefore cannot be easily replaced,” GAMA said.
