Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

The Gulfstream G550 and G650, as well as the Boeing Business Jet BBJ1, are ensnared in 25-percent aircraft import tariffs imposed today by China as a result of an escalating tit-for-tat trade war with the U.S. It’s unclear if these tariffs are an increase of, or are in addition to, China’s existing 22-percent import tariff on business aircraft.

 


Aircraft with “unladen weights” (i.e. basic empty weights) between 15,000 kg/33,069 pounds and 45,000 kg/99,208 pounds are included in China’s latest tariff list that covers $50 billion worth of imports. Basic empty weights for the Gulfstream G550 and G650 are approximately 21,546 kg/47,500 pounds and 24,131 kg/53,200 pounds, respectively. The BBJ1 is near the top of the tariff range, with a BEW of 44,334 kg/97,740 pounds. No other FAA-certified, U.S.-manufactured business aircraft appear to fall within this range.

 


Citi defense and aerospace researcher Jonathan Raviv expects these tariffs to have only a limited effect on Gulfstream, as the bulk of its sales are in North America and Europe. “The bizjet rebound has never been prefaced in China, nor should it; there are other structural impediments, and the Chinese bizjet market has disappointed for years,” he said. “China has been a modest tailwind for Gulfstream lately. This tariff talk could simply further push back the China opportunity.”

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

China's New Aircraft Tariffs Hit G550, G650, and BBJ1

25 percent aircraft import tariffs imposed today by China are the result of an escalating tit-for-tat trade war with the U.S.

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