Pilatus puts temporary halt on US aircraft deliveries

Pilatus is “temporarily” halting deliveries of its PC-12 and PC-24 aircraft to the US.

The Swiss aircraft manufacturer says new US tariffs, set at 39%, put the company at “significant competitive disadvantage” in the US market. 

A key market for Pilatus, the US accounts for about 40% of annual PC-12 and PC-24 production, said the company. 

“The new customs tariff imposed by the US authorities represents a significant competitive disadvantage for Pilatus. In the short term, the tariff will lead to a temporary halt in deliveries and thus to a temporary interruption of US business,” said Pilatus. 

The Swiss government and domestic companies were left reeling on Thursday (August 6th) after US President Donald Trump imposed import tariffs of 39% on Swiss goods. Alongside Syria, Burma and Laos, Switzerland is now facing some of the highest tariff rates globally. 

Pilatus also said “massive additional costs and the resulting competitive disadvantages” compared with US and European competitors were causing increasing uncertainty among its customers.

The Swiss Federal Council said it “remains determined to find a solution” that will lead to the “prompt” removal of the 39% tariff rate. 

“The Federal Council is maintaining close contact with US authorities and the affected industry sectors. It will also shortly engage in detailed discussions on potential relief measures for Swiss businesses,” said the council in a statement. 

Pilatus said it would consider selling PC-12 and PC-24 aircraft in other markets to mitigate the slowdown, while it is also speeding up its plans to expand local production, including an assembly plant in Sarasota, Florida.

Pilatus, which has 3,000 employees, added it is considering short-time working or streamlining its workforce through natural attrition to avoid layoffs.