Swiss aircraft manufacturer Pilatus has temporarily suspended deliveries of its PC-12 and PC-24 aircraft to the United States. The suspension comes following the introduction of steep U.S. import tariffs on Swiss goods.
Pilatus said the new 39% customs duty imposed by U.S. authorities places it at “a significant competitive disadvantage” compared to U.S. and European rivals. The U.S. market accounts for about 40% of annual production for both aircraft types.
The tariffs would result in “massive additional costs” and create uncertainty among customers, Pilatus said. For now, the company said it plans to redirect aircraft intended for U.S. buyers to other global markets. It is also accelerating plans for a local production facility in Sarasota, Florida, which could help mitigate the impact of the trade measures. “The tariff will lead to a temporary halt in deliveries and thus to a temporary interruption of U.S. business,” the company said in a statement reported by Reuters.
The tariff announcement, made Thursday by U.S. President Donald Trump, has prompted Switzerland to open discussions with Washington in an effort to ease trade restrictions. Economists have warned the move could trigger job losses as Swiss companies face reduced access to the American market. Pilatus said it is committed to protecting the jobs of its 3,000 employees and may implement short-time work or rely on natural attrition to adjust staffing levels if necessary.
FYI, the PC-12 is a turboprop - hence the big fan on the nose.
The PC-24 is a jet.
Was this an AI-written article, or just a sign that the training wheels are not doing the trick for the humans?
Nice job, Firecrown…you’re well on the way to destroying what was one of aviation’s most respected brands.
Not at all sure about the tariff regs. Also have not heard that the tariffs apply to used equipment. How about Pilatus sell and export the aircraft to a third party. A third party in a tariff friendly country. Perhaps PR. The PR dealer then sell the used PC to USA clients.
Explain to me again how the Trump tariffs are good for the country…
What country is ‘PR’?
Maybe rebalancing the existing tariffs? You did hear the part where they indicated there would be temporary pain didn’t you?
In case you didn’t realize, most if not all of the readers on here are of average or above average intelligence. We all see the same things you do. It is really not necessary to point out every little mistake they make. This is a free publication so it is expected by me to not be perfect. I use this to notify me about things I might want to explore further. I do not use it as a single source.
Perhaps your expectations are too high?
No one believes the pain will be temporary…
Well, the reason for the pause was the tariffs, the article got that much right.
What it left out was that they are accelerating the move to expand operations in the USA, directly attributed to tarriffs.
Link with sources: Google Search
Then I guess you will be really pissed when a human points out that one of those “above average intelligence” readers split an infinitive in his high dudgeon, while defending an error in the topic sentence of the article.
Some might find this a comforting indication that the article (or at least, the first sentence) was written by a fallible human. Others would question what editorial “value-add” the AI brings to the table.
Oh yeah, it saves the publisher money.
Of course, a really clever AI could have inserted it as a MacGuffin to lead the credulous astray. Who knows, anymore …
Let me read between the lines to ensure I understand what was not specifically stated.
Pilatus is building an assembly/manufacturing plant in Sarasota, Florida and is stepping up completion of that facility. My guess is the plant will have employees and most of those employees will be tax paying consumers. My guess is that may be good for our nations’ economy.
The Swiss government is stepping up trade talks with the U.S. The stepping up of trade talks may be for the purpose of lowering the tariffs. The Swiss trade off to lower tariffs may be to allow the US a bigger share of the Swiss market. My guess is this could promote US exports to Switzerland and may be good for our nations’ economy.
I had to make guesses about both of these “between the line” thoughts. I am certainly not as intelligent as most that post comments here so I do expect someone will help me understand how inaccurate my guesses really are. Please let me thank you in advance for your clarifications.
Switzerland has a serious balance of trade problem with the U.S. that needs to be corrected. Sounds like they are getting the message. Pilatus should look at how its fellow Swiss companies have expanded globally by producing overseas. For instance Buehler, a leading producer of precision food processing equipment, has major manufacturing facilities in Minnesota and North Carolina. ABB has its North American R&D center in North Carolina, factories in many states, especially for electric motors in Fort Smith, Arkansas, the former Baldor motors. HondaJet has its HQ also here in North Carolina, not in Japan. BMW’s largest factory is in South Carolina, not Bavaria. It exports 70% of the US production abroad, including to Germany. Everyone wins.
POTUS Donald Trump ha a fixed-pie mentality like a Marxist, instead of win-win.
Freedom of trade allows different people to do what they can do best.
Offshoring low-skill labour frees American workers to do higher value work. Some will need to upgrade or change their skills, which they may not like after 25 years in a particular high-paying job.
There are concerns of security but they should be addressed as such.
Food is a particular category, Canola grows better in Canada than the US but oranges don’t.
Horror shows of past American protectionism include the Chicken Tax. The US put a tariff on small pickup trucks, which had effects:
Does trade have to be equal between countries?
If Switzerland has a surplus with another country and that country exports to the US, can it balance in total?
Also, work like software and inventing should be considered in the total question. For example, the very good medicine Metformin for diabetes was invented in Europe.
Yes and all that happened before Trump became president and started his tariff fiasco. Tariffs are designed to keep countries from “dumping” products on the market, not to force countries to manufacture all their products here. There is a global economy with a global supply chain. You punish the outliers with tariffs, not our neighbors and allies.
No, trade does not have to be equal between countries, states or even counties. Real money is fungible. Every net dollar earned at Pilatus can only be spent on items sold in dollars, so in principle at least, all net dollars come back to the US. However, not all countries play by the same rules, with many manipulating currencies, regulations barring certain imports, and otherwise making it tough for U.S. companies to export to them. The Communist Chinese are the experts at this, but many others like Japan have done this for decades. It is good business however to open production facilities near one’s customer base. Many Swiss companies have done this, with great success. One German company I know, Ziehl-Abegg, has even shifted its future development center and large production facility from Germany to North Carolina, as they have so many customers here and there are so many advantages, for instance fewer regulation, lower cost of land and power, and essentially no unions. Pilatus would be wise to do the same.
With all respect, U.S. tariffs on foreign imports have been far below those of other countries for many decades. Even his reciprocal tariffs are in general still quite a bit lower than prevailing tariffs from these countries on our exports to them. If tariffs were indeed so bad, why do other countries have higher tariffs on US imports? We should, in fact, replace income tax - which punishes the successful - with tariffs. It is fairly clear now that these new tariffs are not increasing prices, inflation continues to drop along with prices we pay. Much to the chagrin of the minority of Americans opposing Trump’s bold policies. This all ends well for those who work in America.
There were no tariffs on aircraft and aircraft parts imported and exported between the US and Switzerland until Trump instituted his tariffs. In fact aviation is a net positive for the US, we export way more than we import. Swiss Airlines has purchased 12 B777-300s. The Swiss military is ordering F35 fighters from Lockheed. But we should still punish the Swiss for selling the Pilatus, that has many US made components, in this country. Last year, Pilatus announced that they were investing 40 million dollars to built a facility in Sarasota to serve as a sales and service center, maintenance area and possibly an assembly area. They made this investment while Biden was still president and there were no tariffs to influence their decisions. They made a business decision that benefits their customers, their company and both countries.In a worldwide economy that is how it should work.
Not so sure about that. The Swiss did wisely abolish tariffs on industrial imports, in 2024. But before that, not sure what they did on aerospace parts. Fact remains, many other Swiss companies set up manufacturing facilities in the US decades ago. If Pilatus were to announce an acceleration of plans for Sarasota, they would probably have a better chance in negotiations. The tariffs on Switzerland are far more than targeted at one company, Pilatus, however. The Swiss enjoy a much higher standard of living than Americans, and there are many reasons for this. Trade balance sure helps them.
Just FYI the aviation agreement goes back decades, to 1980 and Switzerland is a signatory to it. Another interesting tidbit is that the Swiss export more gold to the US than every other country in the world except Canada. In the last 12 months gold imports from Switzerland totaled over 60 billion dollars. Guess what gold loving president just exempted all that gold from the 39% tariffs. So a 39% tariff on a 3 million dollar aircraft, made with many US components, and zero tariffs on 60 billion dollars worth of gold bars. Should we call him President Trump or King Midas?
Your general animosity against Trump aside, he did not grant an exemption on gold sales, but corrected an error: “The U.S. Customs and Border Protection afterwards said Washington might put tariffs on the most widely-traded gold bullion bars in the United States. However, Trump said on Monday that gold would not face tariffs.” More important is the back story that no one is mentioning, that the Swiss president bungled negotiations from the outset: “a phone call between Swiss president Karin Keller-Sutter and U.S. president Donald Trump, on the eve of the Aug. 1 tariff deadline, did not go well, according to sources familiar with the matter and reports from news outlets including the Financial Times and Wall Street Journal. “The woman was nice, but she didn’t want to listen,” Trump said of the call” Hodinkee.com Tariffs are imposed on Swiss exports to many other countries, so why all of a sudden the hissy fit against us.? US tariffs have been very low by comparison for far too long. BTW - I admire greatly Pilatus Aircraft, have toured their beautiful facility in Stans, and speak their language. They should though look closer at other excellent Swiss companies who have established production facilities in the U.S. Their president is in fact from the town of Uzwil, home to Buehler, which has two large facilities in the US. I started a Swiss-style apprenticeship program with the North Carolina office in 2013, NCTAP.org, and enjoyed great support from the Swiss. North Carolina in fact was founded in part by Swiss nobility, the reason our first state capital was New Bern near the coast.
Let me know when you buy a Rolex made in Alabama.
Now that is funny - thanks for the humor! I never really understood why anyone would wear a watch worth more than my first airplane, but why not, if it turns you on. Make mine a cheap aviation watch knockoff from Walmart. I destroy them anyway while in my workshop making aircraft composites. But, if I did want to waste a ton of money on a watch, it would be a rare Iren Dornier timepiece, since I started my aircraft engineering career at Dornier in the early 80s. Raleigh is only an hour away from us, and is now home to a Swiss watchmaker: “Audemars Piguet, the Swiss luxury watchmaker, is establishing a new North American service center in Raleigh, North Carolina, according to multiple sources. This move involves a $22 million investment and the creation of 105 jobs.” Hello Pilatus - see how this is done?
This is part of a press release from Pilatus. “The initial development will include 54,000 square feet dedicated to maintenance activity, spare parts distribution and new aircraft deliveries, plus an additional 17,000 square feet of workshops, office and administrative space. The facility is expected to be operational by mid-2026. Future growth plans for Pilatus’ Bradenton location include final assembly for aircraft delivering to North and South America and may ultimately employ up to 300 people.” No matter what kind of watch you are wearing I think it’s “time” to give them a break. (Did you like how I did that last part?)
That sounds terrific. Bradenton is probably a good location, too. The Swiss president should have had a list of such projects from Swiss companies to read during her first phone call with Trump. Having lived in Europe for many years, very near the Swiss border, and as a frequent visitor, I am dismayed at the one-sided news they get, which is essentially a translation of NYT/CNN/MSNBC/etc. My Swiss friends are always a bit incredulous when I show them the facts, as they never hear the other side of a story. They were absolutely convinced Kamala would win last November, even on the morning after the election. Way back in 1980 I visited the company SABCA in Gosselies, Belgium where the Belgian Air Force F-16s were being assembled. I suspect this was a requirement from the Belgians for a purchase of the aircraft. I think the Dutch might have done the same, not sure. So these offsets have been going along for a very long time. For instance, when the Polish government bought DC-9s many moons ago, all the Douglas employs got a goose for Christmas, from Poland. True story.