The newly instituted tariffs that have been levied against the global steel industry and the impending threat of a trade war with trade partners like Canada and Mexico has the General Aviation Manufacturers Association (GAMA) and many others concerned that supply chains will be impacted.
“Tariffs would affect the intricate and very complex global supply chain that can take years to establish given that it relies on suppliers with unique capabilities that are highly regulated and therefore cannot be easily replaced,” said GAMA in a statement.
“Even in instances where alternative suppliers may exist, or could be created domestically, aviation manufacturers cannot rapidly shift to different sources or facilities without FAA [U.S. Federal Aviation Administration] regulatory approval, potentially compromising contracts, safety and compliance, quality and value to the consumer.”
The continued dismantling of government agencies like the FAA could also pose challenges to supply, but these changes will also have an impact on the maintenance, repair, and overhaul (MRO) sectors as well. According to GAMA, MRO facilities employ almost 210,000 people in the U.S. while the general aviation industry supports over 1.1 million jobs and $247 billion in annual output.
“If the parts and products used in the MRO work are subject to tariffs, it could jeopardize the viability of domestic MROs and their highly skilled workforce, given that repair station work may be moved by aircraft owners and operators to outside the U.S. due to increasing costs,” GAMA said.
In 2023, U.S. fixed-wing aircraft manufacturers exported 490 piston, turboprop, and jet airplanes, which represents nearly a quarter of all aircraft produced, an economic impact estimated to be valued at $5.2 billion or nearly 46 percent of all U.S. general aviation manufacturers’ total billings. GAMA is readying an updated economic impact study to gauge the impact.
