Potential Impact Of New Tariffs On Business Aviation

Highlights

• Though the 25 percent tariffs imposed by the U.S. on Canadian- and Mexican-origin products on March 4, 2025, have the potential to significantly impact business aviation transactions, the U.S. on March 7, 2025, exempted goods qualifying for duty-free treatment under the U.S.-Mexico-Canada Agreement (USMCA) from those tariffs until April 2, 2025. It appears that most Canadian aircraft and engines would qualify for duty-free treatment under USMCA, but the analysis for parts and components is more complex.
• Other tariffs may also affect business aviation, including the new U.S. tariffs on China, aluminum and steel tariffs set to go into effect on March 12, 2025, and counter-tariffs proposed or implemented by Canada, China and Mexico.