Aircraft tariffs have become an increasingly important consideration in cross-border business jet transactions. For buyers evaluating aircraft manufactured outside the United States, tariff exposure can potentially affect acquisition costs, transaction timing, and overall deal economics.
What was once a consideration that might be addressed later in the transaction now deserves attention much earlier in the aircraft acquisition and import process.
Country of manufacture, import status, export history, documentation, and the movement of an aircraft across international borders can all influence how a transaction is treated. This is particularly important when evaluating business aircraft manufactured in major aviation markets such as Canada, Brazil, and Switzerland.
For buyers considering Bombardier, Embraer, Pilatus, or other internationally manufactured aircraft, understanding potential aircraft import tariffs before structuring the transaction can help identify risks while there is still time to address them.
Last Updated: October, 2026
| Country | Major Manufacturer | Key Transaction Consideration |
|---|---|---|
| Canada | Bombardier | USMCA qualification, export history and potential re-import exposure |
| Brazil | Embraer | Manufacturing origin and applicable U.S. import treatment |
| Switzerland | Pilatus | Applicable civil aerospace trade treatment and import documentation |
How Country of Manufacture Can Affect Aircraft Tariffs
Tariffs in business aviation are not applied uniformly. They depend heavily on:
- Where the aircraft was manufactured
- Whether it qualifies under existing trade agreements
- Its export and re-import history
- How and when it crosses a border
The United States has negotiated “zero-for-zero” tariff agreements on civil aerospace products with select partners, including Switzerland, which has helped provide stability in some transactions. However, these agreements do not eliminate complexity. Each aircraft must still be evaluated individually, and assumptions can be costly.
This is especially true for aircraft manufactured in Canada and Brazil, where tariff exposure can vary widely depending on transaction structure and history.
Canada: Bombardier Aircraft and Re-Import Risk
Canada is often assumed to be straightforward due to the USMCA trade framework, but Bombardier aircraft—particularly on the pre-owned market—require careful scrutiny.
While new Bombardier aircraft are generally USMCA-compliant, used aircraft can present significant tariff risk, especially if they were previously exported from the U.S. and are now being re-imported for closing. In certain scenarios, these transactions may be exposed to tariffs of 35% or more, depending on how U.S. Customs views the aircraft’s movement history.
One of the most critical—and least clearly defined—issues is “transshipment.” If an aircraft has been outside of USMCA customs control in a way that removes its qualifying status, tariff exemptions may no longer apply. The challenge is that “outside of customs control” is not precisely defined and may depend on how and where the aircraft has been operated or based.
The safest approach is to assume exposure first and then work to disprove it through consultation with qualified U.S. Customs counsel and experienced import specialists.
Brazil: Embraer Aircraft and Tariff Considerations
Brazil remains another key area of focus for buyers importing aircraft into the United States. Aerospace products manufactured in Brazil are currently subject to a 10% tariff, which can directly affect:
- Early Embraer Phenom models
- All Praetor aircraft manufactured in Brazil
This makes it critical to confirm actual manufacturing origin, rather than relying solely on aircraft model or brand. Some Embraer aircraft are manufactured in the United States and may not carry the same tariff exposure—but this distinction must be verified through documentation.
For buyers evaluating Embraer products, tariff planning should be built into the transaction from the start, including pricing discussions, closing structure, and timeline expectations.
Switzerland: Pilatus and a More Favorable Framework
Aircraft manufactured in Switzerland, including Pilatus, are generally in a more favorable position under current U.S. trade frameworks. The existing zero-for-zero agreements on civil aerospace products have helped reduce tariff friction for Swiss-built aircraft entering the U.S. market.
That said, “favorable” does not mean “automatic.” Import classification, documentation accuracy, and transaction timing still matter. Even in cleaner scenarios, experienced oversight remains critical to ensure compliance and avoid delays or missteps at the border.
Tariff Risk Extends Beyond the Aircraft Itself
It’s also important to understand that tariff exposure is not limited to the aircraft alone. Engines and parts moving across borders—particularly for maintenance, overhaul, or MRO events—can trigger separate import/export considerations.
In practice, this means:
- Engine removals for overseas maintenance can create new tariff exposure
- Parts sourcing can increase operating costs even if the aircraft itself is unaffected
- Long-term ownership costs may rise due to continued tariff pressure within the global supply chain
Tariffs are no longer just a transactional concern—they are an operational one.
Aircraft Imports and Exports: Are We Crossing a Border?
Every tariff analysis begins with a deceptively simple question: Is the aircraft crossing a border?
This includes more scenarios than many buyers expect. Even bringing an aircraft into the U.S. for a pre-purchase inspection constitutes a border crossing and deserves attention.
From there, it’s critical to determine:
- Whether the movement is an import or an export
- Whether any exemptions apply
- Whether documentation supports the intended treatment
Imports require the most scrutiny, as this is where tariff liability is typically triggered. Exports, meanwhile, must be handled correctly to protect future re-import options and ensure compliance.
Documentation Discipline Makes a Difference
One often-overlooked factor is whether an aircraft was properly exported in the past. If an aircraft was exported with the correct customs filings—such as an ITN number—within three years of re-import, and no major improvements were made, it may qualify for tariff-free re-entry.
However, this requires:
- Accurate records
- A clear distinction between customs export and de-registration/export COA (which are not the same)
- Early verification during deal structuring
Documentation discipline can meaningfully influence outcomes—but only if addressed early.
Our Take at Tern Jet Sales
Tariff planning is no longer a niche compliance issue—it is now a core component of transaction risk management. Buyers and sellers who wait until the final stages of a deal to address tariffs often find themselves making high-stakes decisions under pressure, with limited options.
Those who evaluate country of manufacture, export history, and border strategy early—and engage experienced customs and aviation professionals from the start—are far better positioned to protect both their timeline and their economics.
At Tern Jet Sales, we help our clients identify these risks early, structure transactions thoughtfully, and navigate cross-border complexity with clarity and confidence. In a market where margins, timing, and certainty matter more than ever, informed planning isn’t just smart—it’s essential.
Read other blogs from Tern Jet Sales at www.ternjetsales.com/blog.
Important: Tariff rates, trade policies, customs classifications, and import requirements can change and may vary based on an aircraft’s manufacturing origin, transaction history, import/export status, and other circumstances. This article is provided for general informational purposes only and should not be considered legal, tax, or customs advice. Buyers and sellers should consult qualified customs, legal, and tax professionals regarding their specific transaction.