The threat of tariffs on imports to the U.S. market could dent sales of French-made Falcon business jets, according to Dassault Aviation chairman and CEO Éric Trappier. Announcing what he described as “unprecedented” net income of €1.1 billion ($1.2 billion) during a press conference today in Paris, he warned that the Trump Administration’s declared intention to impose 25% tariffs on the European Union could undermine its objective of delivering 40 Falcons this year.

Acknowledging instability in the context of the war between Russia and Ukraine, and political turbulence in France, Trappier said the new U.S. government’s marked shift in strategy represented the most significant source of uncertainty around trading conditions in 2025. “The most concerning [political development] is the arrival of the new Trump Administration,” he said, highlighting the likelihood of tariffs and also what he characterized as a breach in the long-standing defense alliance between the U.S. and France.

Nonetheless, the Dassault group’s net revenues increased by almost 30% in 2024 to reach €6.2 billion, while net earnings increased by 19% to just under €1.1 billion. It closed last year with a record backlog of orders valued at €43.2 billion.

This year, the company is targeting further revenue growth to €6.5 billion. However, Trappier warned that political and economic turbulence, also including rising taxes in France and further European Union action to suppress business aviation on environmental grounds, could undermine this objective.

The Dassault CEO’s comments were made the day after the U.S. government imposed 25% tariffs on major trading partners Canada and Mexico, with President Trump having repeatedly declared his intention to charge the same rate on European goods. Trappier pointed out that its rival Bombardier has already adjusted its forecast for 2025 due to the tariffs on Canada, where most of its manufacturing is based.

At the same time, Dassault and the wider European business aviation sector feel increasingly embattled in the face of hostile EU policies, including their exclusion from the so-called taxonomy policy that determines which industries are eligible for support as part of decarbonization efforts. Trappier said it is “scandalous” that U.S.-made business jets are not penalized by this European policy and that this is why Dassault is taking the lead in a legal case against the European Commission in the European Court of Justice.

Trappier complained that Dassault and other European companies get no credit for the efforts they are making to decarbonize. “The more virtuous we are, the less we are recognized for it, so maybe we should not be so virtuous,” he commented. “We use sustainable aviation fuel in our aircraft but there is still a lot of business aviation bashing.”

Dassault Could Scale Back Hiring

Dassault is now reevaluating its plans to recruit more staff across the group after it hired just under 2,400 staff in 2024, including 239 apprentices. “We are reassessing what we will do as we don’t know what will happen in terms of tariffs, and what could happen [for Falcon deliveries] in the U.S.,” Trappier told reporters.

Green aircraft assembled at Dassault’s main factory near Bordeaux for delivery in North America are flown to its completions center in Little Rock, Arkansas, where interiors and some other equipment are fitted. However, despite the sourcing of some electronics from U.S. companies, Trappier acknowledged that overall U.S. content in the Falcons is less than 50%. The French airframer is in the process of building a new Falcon service center in Melbourne, Florida.

In 2024, Dassault delivered 31 Falcons, which was an increase on the 26 delivered in 2023, as it continues to try to reverse supply chain difficulties that have impacted most aerospace manufacturers. These included the first delivery of the new Falcon 6X model, and Dassault booked 26 new Falcon orders last year, which was slightly up on the 23 sold in 2023. A promotional tour conducted during 2024 saw the 6X log more than 1,000 flight hours.

Dassault’s engineering team is now stepping up manufacturing of the first development aircraft for the new Falcon 10X large-cabin aircraft, as well as preparing the mechanical test cell. Last year, Rolls-Royce conducted the test campaign for the aircraft’s Pearl 10X engines, and Trappier said Dassault is now targeting initial deliveries at the end of 2027.

Defense Portfolio Is Thriving

Progress on the defense side of its business appeared to be a greater source for optimism at Dassault, with Trappier hailing 30 new export orders for its Rafale fighter signed in 2024, and 21 aircraft delivered. These include sales with new customers Indonesia and Serbia.

This year, the manufacturer expects to deliver another 14 of the current F4 version of the Rafale, with 56 more to follow according to the current timeline for confirmed contracts. Export orders for the Rafale now account for 273 of a total of 507 aircraft delivered or on backlog, with Trappier saying that the French manufacturer is in a strong position to do defense deals with non-aligned nations.

In India, the Dassault Reliance Aerospace Limited joint venture with local industrial partners is now expanding its activities to include manufacturing of airframe sections for the Falcon 2000 and 8X, with plans for a final assembly line also under consideration. Dassault is getting support from Indian companies Dynamatic and Mahindra & Mahindra, which are, respectively, supplying fuel tanks and side consoles for the 6X model.

Trappier pointed to the recent announcement by France’s armed forces minister confirming the development launch of the uncrewed combat air vehicle program Dassault is leading. He also welcomed progress with the future F5 version of the Rafale that is expected to enter service after 2030.

This year, Dassault will continue to lead work on phase 1B of the New Generation Fighter demonstrator it is proposing for Europe’s Future Combat Air System, with this program yet to reach the contract confirmation stage. Questioned about a possible wider European cooperation for new military programs in the wake of the U.S. government’s anticipated reduction in commitment to NATO defenses, Trappier said he has not had any discussion with Airbus or members of the Tempest fighter program, including BAE Systems, Leonardo, Rolls-Royce, and MBDA.

On January 24, Dassault achieved a first flight with the AVSIMAR maritime surveillance version of the Falcon 2000LXS aircraft after it last year delivered the last of four Falcon 2000s to the South Korean government. The company is continuing efforts to develop the Archange strategic intelligence platform based on the Falcon 8X jet.