As we move toward 2026, tariffs have become one of the most consequential—and least forgiving—factors in cross-border aircraft transactions. What was once a secondary consideration, often addressed near the end of a deal, is now a front-line risk that can materially impact pricing, timing, and overall deal viability.
In today’s market, where transactions move quickly, and aircraft often cross borders multiple times during their lifecycle, even small misunderstandings around country of manufacture, import status, or export history can lead to unexpected costs significant enough to change the economics of a deal altogether.
At Tern Jet Sales, we are seeing tariff exposure become part of the “new normal,” particularly for aircraft manufactured outside the United States. For buyers and sellers alike, early planning and informed guidance are no longer optional—they are essential.
Why Country of Manufacture Matters More Than Ever
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.
The First Question to Ask: 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.