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The White House announced on Nov. 14, along with the Swiss Confederation and the Principality of Liechtenstein, the framework for the Fair, Balanced, and Reciprocal Trade Agreement.
If the agreement is made, the U.S. will remove the 39% tariff on Swiss goods, which includes aviation-related goods. Instead, the U.S. will apply the higher of either the U.S. most-favored-nation (MFN) tariff rate or a tariff rate of 15% to goods from Switzerland and Liechtenstein. The two countries, in return, will improve market access for U.S. goods by applying zero duties on certain goods.
Pilatus announced in August that it had halted deliveries of its PC-12 and PC-24 business aircraft to the U.S. in response to the 39% tariff. The company stated that the massive additional costs versus U.S. and European competitors were causing increasing uncertainty among customers. The company has committed to finishing its deliveries through the end of 2025, according to AOPA, but has not made any further statements."For the time being, Pilatus will honor its contractual responsibilities towards its US clients and dealers by ensuring deliveries to the USA until the end of 2025," said Jérôme Zbinden, executive assistant to the Pilatus chairman. "PC-12 and PC-24 ferry flights to the USA have therefore resumed. Intensive discussions have been held with US sales partners and end customers to seek transition solutions with regard to handling trade tariffs."
"This framework tears down longstanding trade barriers that have held U.S. exporters back and secures billions in new investment on American soil—investment that will generate thousands of good-paying jobs in every state," said Ambassador Jamieson Greer. "This deal builds upon the success of America first Trade Policy by correcting chronic trade imbalances, opening new markets for U.S. goods, and welcoming massive Swiss investment to help reduce our deficit in pharmaceuticals and other key sectors. I thank my counterparts from Switzerland and Liechtenstein for their collaboration and commitment to achieving reciprocal trade with the United States."
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The Trump Administration also announced a similar trade agreement with the Republic of Korea, which returns to zero-for-zero tariffs on imports of aircraft and parts.
"NBAA welcomes the return to zero tariffs for aircraft and parts, which will have a significant positive impact on U.S. leadership in global aerospace safety and innovation," said NBAA President and CEO Ed Bolen. "These new agreements not only reestablish equitable trade relations with the Republic of Korea and Switzerland but also enable the aviation industry to continue its major contributions to U.S. jobs and the economy."