In 2024, the Trump administration announced a sweeping new series of tariff policies targeting a range of imports from China and other Countries. While much of the media attention has focused on consumer goods, the aviation industry — particularly the aftermarket for aircraft parts — is quietly preparing for serious disruption.
Aviation Industry officials have held meetings with senior members of the Trump administration including the President, asking them to restore the tariff-free regime under the 1979 Civil Aircraft Agreement, under which tariffs are historically very low, the sector enjoyed a $75 billion annual trade surplus.
Boeing has already had planes returned from China that were considered too expensive based on the new tariffs. China owns and operates many Boeing and North American Business Jets – and aftermarket parts will be critical to China. This is reflected in the exemptions listed below. As you can see it’s in the interest of both parties to come to an agreement, and lower tariffs.
News as of Monday May 12th 2025 has already scene a de-escalation in trade talks between China and the USA in Geneva, Switzerland. The US will cut extra tariffs it imposed on Chinese imports in April of this year to 30% from 145% and Chinese duties on US imports will fall to 10% from 125%. The new measures are effective for 90 days. This is great news for both Countries as the former tariffs laid out in April were clearly unsustainable for trade and the aviation aftermarket.
China this week decided to eliminate tariffs from OEMs providing Jet Engines, Nacelles and Landing Gear from USA (GE, P&W), French (Safron) and other leading OEM’s. While the Chinese government has not publicly detailed the rationale behind these exemptions, industry analysts suggest that they aim to alleviate the impact of U.S. tariffs and maintain the stability of China’s aviation sector.
Tariffs (also referred to as Duties) are charges imposed by a government on imported goods. Their main purposes are to protect domestic industries from foreign competition, retaliate against unfair trade practices, or generate revenue.
For example, if a USA distributor drop ships aircraft parts to a customer in China and the parts were made in France (French Origin) then the Chinese customer would be required to pay the tariff not the USA distributor. The tariff will be the China tariff rate (often a % of the value) on the French origin aircraft parts.
To understand tariffs charged by the US government on imports into the USA you can do a simple search using key words on the US International trade commission website https://hts.usitc.gov/
In aviation, tariffs usually apply at the level of specific Harmonized Tariff Schedule (HTS) codes, which classify products internationally. Aircraft parts fall into several categories — from engines and avionics to landing gear and structural components.
For example, if you search for “aircraft” “turbines” you will see the HTS code 8411.11.40.00. The first 4 digits (8411) are for the heading (Turbo Jets, turboprop etc…) and the next two digits (11) are thrust not exceeding 25kN. Once you find the exact engine type and corresponding HTS code you can then work out the tariff. You can see across from that HTS code under “Rates of Duty” the rate of 35%. So, if the foreign made turbo jet engine was valued at $2 million dollars, then the duty or tariff coming into the USA would be $700k.
Please note that this is a general duty rate and not necessarily the rate for any given country as exemptions, special status and other factors can apply.
The aviation aftermarket — companies that buy, refurbish, resell, or install aircraft parts — relies heavily on global supply chains. Very few parts are manufactured entirely domestically. Even components that seem “American-made” often incorporate foreign-manufactured materials or subcomponents. Although, where the parts were substantially transformed is the key definition that applies to county of origin.
In some cases, even U.S.-designed parts manufactured abroad may be subject to tariffs when reimported into the U.S. aftermarket supply chain. This would potentially increase USA companies selling price to customers in the global marketplace.
Tariffs create added complexity and unpredictability. Suppliers must navigate new documentation requirements, compliance risks, and increased import costs. Repair stations, MRO (Maintenance, Repair, and Overhaul) providers, and independent distributors all face margin pressure as they try to absorb — or pass along — these added costs.
Companies/ OEM’s that source subcomponents or materials internationally (say from China) may need to find alternative suppliers, which can take time and involve additional vetting and certification.
Businesses holding parts imported before the tariffs may see higher resale prices, but replenishing that inventory could be more expensive, leading to inconsistent pricing for customers.
Mistakes in tariff classification, country of origin labeling, or customs documentation could lead to fines and shipment delays.
Identify all parts sourced from tariff-affected Countries, even if they come through third parties.
Where possible, consider suppliers based in Countries not affected by the new tariffs, though that may not always be feasible.
Look for parts that you have a significant cost advantage – in these cases you may be able to swallow the tariff cost for your customer in the form of a price reduction. This would give you a unique advantage in the marketplace.
Also, identify parts that are in stock purchased prior to tariff changes. There may be opportunities to increase pricing on these parts based on new tariffs and increased pricing.
Trade policies are volatile. Future exemptions, retaliations, or negotiations could rapidly change the tariff landscape.
If parts price or lead times increase, proactive communication can preserve trust and help manage expectations.
By the time you get to the end of this article the tariff situation may have already changed.
The China situation is fluid meaning that things could change dramatically and its likely that a deal will be done, that reduces tariffs and encourages trade. This would benefit both countries immensely.
The aviation industry has always been resilient, and those who adapt early to this new environment will be better positioned not only to survive but to grow. Watching the evolving political landscape and acting on it may be just as important as stocking the right parts.
