Swiss Manufacturer Forced to Back Off From One of Its Largest Markets

After President Trump slapped a 39 percent import tariff on Swiss goods, Pilatus decided to temporarily cut ties with the US market by refusing to deliver PC-12 and PC-24 business jets to American customers. If the tariff chaos doesn’t die down soon, the commercial aviation industry could be facing similar complications.

This is no small move: the US normally takes about 40% of Pilatus’ annual output. The PC-12 single-engine turboprop and PC-24 light jet have long been favorites among corporate operators and private owners, especially at busy business aviation hubs like Teterboro and Van Nuys. But now, with nearly 40% slapped onto the price tag overnight, the company says the competitive disadvantage is just too steep to ignore.

The August 6 tariff announcement caught Switzerland off guard…especially since trade talks had seemed close to a deal. Pilatus says the added cost and uncertainty are already rattling customers, and they’re shifting focus toward other regions: Asia-Pacific, Latin America, and Europe are now in their crosshairs. There’s even talk of speeding up plans for a US assembly site in Sarasota, Florida, to sidestep the tariff problem altogether.

For now, Pilatus insists job security for its 3,000 employees is the priority - though options like reduced working hours and adjusting staffing through natural attrition are on the table. They’re also reassigning aircraft to other buyers rather than letting completed jets sit idle.

The halt is temporary (at least, that’s the plan), but unless the tariff situation changes, it could drag on. And while Pilatus is the first in this sector to make such a move, they might not be the last. This is especially true as we’ve already seen US airlines (i.e., Delta) express concerns over Airbus deliveries with tariffs in effect.

FMI: www.pilatus-aircraft.com