Finance, Taxes, Insurance
Blog: Tariffs Set To Burden Aerospace Supply Chains
New U.S. administration set to impose tariffs on Canada, Mexico, and China
Dassault Falcon completions center in Little Rock, Arkansas
What tariffs might apply to some of Dassault's Falcon 6X aircraft that start their manufacturing journey in France before being flown to the company's completions center in Little Rock, Arkansas, powered by U.S.-made engines? © Dassault Aviation

If I were to survey aerospace and defense (A&D) industry leaders about what they are most hoping for in 2025, I’m confident that they would not request double-digit tariffs on trade between the U.S. and its main trading partners. And yet, that seems to be what they must now be bracing for, with President-elect Donald Trump having confirmed on November 25 that among the stack of executive orders he intends to sign after his inauguration on January 20 are tariffs of at least 25% on Canada and Mexico and at least 10% on China.

These rates could be imposed over and above the baseline tariffs of between 10 and 20%, which Trump has previously threatened to impose on all other major A&D trading partners, including France, Germany, the UK, and Singapore. In the case of China, the 10% rate could be applied on top of a blanket 60% tariff promised during the election campaign.