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Home » US reaches zero-tariff aircraft agreements with Switzerland and South Korea
AeroTime

US reaches zero-tariff aircraft agreements with Switzerland and South Korea

FlyMarshall NewsroomBy FlyMarshall NewsroomNovember 18, 2025No Comments3 Mins Read
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The United States has reached new trade agreements with Switzerland and South Korea that eliminate tariffs on aircraft and aircraft parts, restoring tariff-free access for manufacturers and operators in both countries. The National Business Aviation Association (NBAA) welcomed the announcements, which bring both nations back into alignment with the 1979 Agreement on Trade in Civil Aircraft. 

The new deals follow similar zero-tariff arrangements the US already maintains with the European Union, Canada, Mexico and the United Kingdom. The agreements restore the long-standing rule that civil aircraft, engines, and parts can move between member countries without tariffs. 

Under the previous US trade posture, aircraft products from Switzerland had been subject to a 39% tariff imposed by the Trump administration. That tariff led Pilatus Aircraft to halt its deliveries to US customers beginning in August 2025. Pilatus resumed deliveries in late October to meet prior commitments, handing over a PC-12 NGX and PC-24 to US buyers. Outside the aviation sector, the tariff on Swiss goods has been lowered to 15%. 

The zero-tariff agreement removes the remaining barrier affecting Swiss-built aircraft and parts, clearing the way for normal deliveries and aftermarket support. Pilatus has a significant customer base in the United States, and the PC-12 and PC-24 are among the most widely used turboprop and light jet models in the business aviation market. 

South Korea is also part of the new agreement, ensuring that aircraft products moving between the two countries will remain exempt from tariffs. Both Switzerland and South Korea are signatories to the 1979 Civil Aircraft Agreement, which established tariff-free trade for civil aircraft among 30 participating nations. 

NBAA President and CEO Ed Bolen said the new agreements will support US jobs and reinforce the importance of open trade in the aviation sector. Bolen pointed to the 1979 framework as a factor in the US aerospace industry’s long-standing trade surplus and its economic contribution in the United States. 

A 10% US tariff continues to apply to aircraft imports from Brazil. Brazil is also a signatory to the Civil Aircraft Agreement, but that tariff remains in place as part of broader US trade actions affecting Brazilian goods. 

The updated agreements with Switzerland and South Korea provide certainty for aircraft manufacturers, parts suppliers and operators who rely on predictable cross-border trade. The removal of tariffs also reduces costs for US customers receiving aircraft from Swiss production lines and for operators importing parts from both countries. 

The US government has not released detailed implementation timelines, but the new tariff structure is aligned with prior zero-tariff agreements already in effect with other trading partners. The aviation industry is expected to see the impact immediately as deliveries and parts shipments proceed without the additional duties. 

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