Decision Removes the 10% Aircraft and Components Tariff Implemented Earlier this Year

The US is finally soothing some of this year’s tariff chaos, finalizing its return to the zero-rated policy that has blanketed aerospace goods imported from and exported to the European Union since 1979. This revokes the controversial tariff levied on most aircraft and aircraft components coming from the EU at the beginning of Trump’s term.

The Trump administration introduced the 10 percent tariff on EU aerospace goods at the start of the year as part of a broader campaign to rebalance trade. The industry argued that the policy ignored decades of precedent under the 1979 Agreement on Trade in Civil Aircraft, which established tariff-free treatment for airplanes and related components among dozens of signatory nations.

After months of pressure, the administration conceded. The new agreement, finalized in late July and formally implemented with a published guidance in mid-September, is retroactive to September 1, 2025.

The National Business Aviation Association (NBAA) was one of the first to applaud the change, with the organization’s President and CEO Ed Bolen pointing out that “last year, US civil aviation built a $104 billion trade surplus, leading all other manufacturing trade sectors.” He says that the rollback merely restores the “level playing field” enough to allow innovation and growth without being dragged down by tariffs.

The zero-tariff policy aligns with similar deals struck with the United Kingdom in June and Japan in early September. Those agreements carved out aerospace as a special case, exempting aircraft and parts from standard import taxes. Brazil and Switzerland remain outside the club, however, with tariffs of 10 percent and 39 percent still hitting Embraer and Pilatus aircraft. Pilatus has even paused deliveries of PC-12s and PC-24s to U.S. customers while lobbying for relief.

“NBAA commends the administration for returning to a reciprocal zero tariff agreement with the EU for aircraft and parts,” Bolen continued. “This new policy and accompanying guidance will allow for further innovation in the aerospace industry, enable the trade surplus to grow and help the sector continue to make significant contributions to the U.S. economy and job growth.”

FMI: www.nbaa.org