Partner Jonathan Epstein Shares How Tariffs Could Affect the Business Aviation Industry
International Trade attorney Jonathan Epstein recently spoke during a National Business Aviation Association (NBAA) News Hour briefing attendees on the evolving tariff landscape and its implications for the business aviation industry. The program was covered by news outlets including Aviation International News, GlobalAir.com and Flight Global, which also highlighted a letter sent to the federal government by a coalition of U.S. aviation groups calling for exemptions from these tariffs for the aerospace industry because of the supply chain risks posed by the new measures.
Mr. Epstein explained during the webinar that one potential pain point is aircraft sub-assemblies. The Trump Administration announced a delay in implementing tariffs on goods that meet criteria under the United States-Mexico-Canada Agreement (USMCA). Mr. Epstein was quoted in GlobalAir.com as saying it's unclear how the duties will affect aircraft substantially modified outside the United States.
"If you have a U.S. manufactured aircraft that was Mexican registry but was being sold in the United States, that's presumably American goods returned, and shouldn't trigger the tariff, but we don't really have guidance on aircraft that have been improved with new avionics or a new interior that has improved their value advanced value," he said.
Flight Global noted his comments stressing that USMCA requirements are quite complex and advising manufacturers to provide importers with documentation to certify exemptions. He added that these considerations are novel for the industry.
Since 1979, "aircraft and aircraft parts have been largely duty free", he remarked. "Nobody has had to think about tariffs."
Read the article in Aviation International News >>