As we continue to monitor the tariff updates Adrian Parcell-Jones Tax Director, who is the only EU member to sit on the NBAA, takes a look at a recent announcement.

On Thursday afternoon, the US White House issued another Executive Order regarding the imposition of sanctions. This directive imposes an additional 40% tariff on Brazilian imports. Combined with the existing 10% duty, total tariffs on affected goods now reach 50%.

While the order clearly represents significant challenges for Brazilian companies seeking to trade with the US, the aviation sector received notable consideration. Aircraft and related component parts, such as those manufactured by Embraer, will not be subject to the new 40% increase. Instead, they retain the original 10% tariff.

Understandably, Martyn Fiddler would wish for there to be no tariffs applicable to this valuable business sector, however, this exemption does demonstrate the importance of the aviation industry to the US and is hopefully another indication of the US Administration’s recognition of the importance of its own aerospace industry to its economy.

Adrian commented: ‘Credit should be given, in no small part, to the lobbying of the NBAA and other industry bodies who are working tirelessly to ensure that the value of this industry sector is understood by all involved in setting tariff levels’.

Though the situation remains fluid, industry stakeholders should take note of the apparent  recognition by the US Administration of aviation’s strategic importance.

Our team of specialists will continue to monitor the updates and provide relevant commentary where we can.

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