Navigating Tariffs

Navigating Tariffs
Podcast

This podcast from Aviation Maintenance Magazine addresses the impact of tariffs on the aviation industry, particularly concerning aircraft parts. It explains the constitutional basis of tariffs and the President’s delegated authority to enact them, highlighting how reciprocal tariffs from trading partners increase costs for a global industry like aviation. The author argues that current tariffs on aircraft parts may be illegal due to their conflict with the Agreement on Trade in Civil Aircraft (ATCA), which eliminates duties on such imports. Furthermore, the piece discusses potential future tariffs stemming from a Commerce Department “section 232 investigation” into aircraft, engines, and parts, which could provide new avenues for import restrictions, even if current tariffs are invalidated. Finally, it outlines strategies for repair stations and other aircraft parts-users to minimise their tariff obligations, such as utilising Harmonised Tariff System (HTSUS) special codes for returned US-origin goods or temporarily imported parts for repair, claiming duty only on the value of foreign work, considering FAA-PMA parts, or establishing a foreign trade zone (FTZ).