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AEROSPACE NEWS

Aerospace Companies Can Recover Section 301 Tariffs

Key Takeaways
  • Civil aircraft are exempt from forced-labour tariffs.
  • Aerospace imports outside the exemption may still face duties.
  • Section 301 duties are eligible for duty drawback.
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Strategic Implications

The exemption for civil aircraft may indicate a strategic advantage for aerospace companies, which could recover Section 301 duties through duty drawback, potentially mitigating the impact of tariffs on their supply chains.

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What Happened

Navigating Exemptions And Duty Drawback Provisions

New US tariffs could increase costs across aerospace supply chains, but exemptions and duty drawback provisions offer routes to relief. The forced-labour tariff includes a generally applicable exemption for civil aircraft, engines, and parts. However, aerospace enterprises import more than just these exempted items, and some inputs may still face duties. According to Alliance Drawback Services founder and CEO Tony Nogueras, Section 301 duties are eligible for duty drawback, which could enable aerospace companies to recover tariffs. This was first reported by an unknown source.

Source | Originally Published: July 24, 2026

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JUMPSEAT
AEROSPACE NEWS
JUMPSEAT
AEROSPACE NEWS

Aerospace Companies Can Recover Section 301 Tariffs

Sponsored by: Jumpseat Solutions
Key Takeaways
  • Civil aircraft are exempt from forced-labour tariffs.
  • Aerospace imports outside the exemption may still face duties.
  • Section 301 duties are eligible for duty drawback.
Sign in to view key takeaways Get full access to in-depth analysis and key takeaways.
Sign In
Silver membership required Upgrade to Silver to access Key Takeaways.
Upgrade
Strategic Implications

The exemption for civil aircraft may indicate a strategic advantage for aerospace companies, which could recover Section 301 duties through duty drawback, potentially mitigating the impact of tariffs on their supply chains.

Sign in to view strategic implications Get full access to strategic analysis and expert insights.
Sign In
Silver membership required Upgrade to Silver to access Strategic Implications.
Upgrade

What Happened

Navigating Exemptions And Duty Drawback Provisions

New US tariffs could increase costs across aerospace supply chains, but exemptions and duty drawback provisions offer routes to relief. The forced-labour tariff includes a generally applicable exemption for civil aircraft, engines, and parts. However, aerospace enterprises import more than just these exempted items, and some inputs may still face duties. According to Alliance Drawback Services founder and CEO Tony Nogueras, Section 301 duties are eligible for duty drawback, which could enable aerospace companies to recover tariffs. This was first reported by an unknown source.

Source | Originally Published: July 24, 2026

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