Zero Tariff Regime for Aerospace Returns Today
Feb. 24, 2026
A timely NBAA News Hour webinar delved into the Feb. 20 U.S. Supreme Court ruling that struck down many of the tariffs imposed by the Trump Administration over the past 11 months, with industry experts offering topline guidance on the evolving trade and tariff landscape for business aviation stakeholders.
In its landmark ruling on a case brought against the administration, the court determined the administration overstepped its authority by imposing tariffs under the International Emergency Economic Powers Act (IEEPA) of 1977.
“The Supreme Court issued a pretty straightforward decision,” said Bruce Hirsh, of counsel to Capitol Counsel, LLC and former assistant U.S. trade representative. “It authorizes the president to take a number of other steps in response to a national emergency. But tariffs aren’t one of them.”
Soon after the court handed down its decision, President Trump announced a new executive order citing Section 122 of the Trade Act of 1974, which allows tariffs of up to 15% to be levied on countries with significant balance-of-payment surpluses with the U.S. for a period not exceeding 150 days, unless extended by Congress.
Katie DeLuca, partner at Harper Meyer LLP and expert in international and domestic transactions, noted U.S. Customs and Border Protection is working to update its payment systems to reflect the changes, “Customs typically follows a process and implements policy based on official actions such as executive orders, rather than public statements–watch for guidance from the agency.”
In a Cargo Systems Messaging Service bulletin issued Feb. 23, U.S. Customs and
Border Protection provided detailed guidance on the Section 122 tariffs that went into effect at midnight on Feb. 24, and set at 10%, in accordance with a presidential proclamation issued by the White House Feb. 20.
Panel moderator Kristie Greco Johnson, NBAA senior vice president of government affairs, also noted some good news for the industry.
“We’ve had a lot of dialogue over the weekend about these executive orders,” she said. “Effectively, we see a return to a zero-for-zero reciprocal tariffs regime for aerospace as a result of the Supreme Court decision, the repeal of the IEEPA tariffs and exemptions for aircraft, engines and parts under the 122 tariffs.”
The ruling also poses “a stunning change” for buyers of foreign-sourced aircraft from nations not covered by bilateral trade deals negotiated over the past year, said Tobias Kleitman, president and founder of aircraft customs, brokerage and trusts specialist firm TVPX. “It seems we have a window, at least for now, where we can import these aircraft free from tariffs.”
Ongoing uncertainties related to tariffs may also affect a pending U.S. trade deal. On Feb. 23, the European Union paused a legislative vote on the U.S.-EU deal pending further clarity on future tariffs potentially implemented by the United States.
International Business Aviation Council Ltd.