Business Aviation Wins an Interim Strategic Victory

Business Aviation Wins an Interim Strategic Victory

30 Jul, 2025

On 27 July 2025, European Commission President Ursula von der Leyen and US President Donald Trump reached a pivotal deal that reshapes tariff policy between the EU and the United States. Credit must be given to the NBAA Tariff Advocacy Group who have lobbied very hard for a zero-tariff approach for the aviation sector.  While a general 15% tariff will now apply to most EU imports from 1 August, aircraft and aircraft parts have been afforded special treatment. Their tariff rate will return to zero.

This outcome marks a significant triumph for the aviation industry following months of unified lobbying to restore duty-free terms first agreed under the 1979 civil aircraft agreement. The reinstatement of zero tariffs protects globally integrated supply chains and spares businesses from costly workarounds that were already in motion.

It’s important to note this exemption does not extend to the yachting sector, and the political agreement remains a ‘non-binding framework’. Further negotiations will determine how far and how fast things go.

How does the EU and US deal compare with the UK’s separate arrangement? Despite the UK securing a lower overall tariff rate of 10%, aviation remains on a level playing field, with both regions enjoying zero tariffs on aircraft and parts. But as always, the devil lies in the detail and implementation, and we will keep watching for more updates.

If you’d like to learn more about owning, selling or buying a business aircraft, or other high value asset, contact adrian@martynfiddler.com, greta@martynfiddler.com and sarah@martynfiddler.com.

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