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Pilatus announced on Friday that it has halted deliveries of its PC-12 and PC-24 business aircraft to the U.S. This halt is in response to the 39% tariff on Swiss goods that was announced on Thursday.
"The new customs tariff imposed by the US authorities represents a significant competitive disadvantage for Pilatus," the company said. "In the short term, the tariff will lead to a temporary halt in deliveries and thus to a temporary interruption of U.S. business."
According to Reuters, the U.S. accounts for 40% of annual PC-12 and PC-24 production, making it a key market. With this halt in deliveries, Pilatus is considering redirecting PC-12 and PC-24 aircraft to other markets while increasing production in the U.S. itself. This would include an assembly plant that is planned to be built in Sarasota, Florida.
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Pilatus states that the massive additional costs versus U.S. and European competitors were causing increasing uncertainty among customers, but it was doing everything in its power to secure the jobs of its 3,000 employees. The company is considering adjusting its workforce through natural attrition.
According to the Daily Tribune, the Swiss government is still in talks with the U.S. to strengthen trade relations and lift the tariffs.