ZURICH (Reuters) -Swiss aircraft manufacturer Pilatus on Friday said it has temporarily halted deliveries of its PC-12 and PC-24 business jets to the United States, saying steep new U.S. tariffs put the company at "significant competitive disadvantage".
The U.S. is a key market for Pilatus, accounting for around 40% of annual PC-12 and PC-24 production, said the company based in Stans, central Switzerland.
"The new customs tariff imposed by the U.S. authorities represents a significant competitive
disadvantage for Pilatus," said the privately-held company.
"In the short term, the tariff will lead to a temporary halt in deliveries and thus to a temporary interruption of U.S. business," it added.
Switzerland was left in shock on Thursday after U.S. President Donald Trump imposed crippling import tariffs of 39% on Swiss goods.
Officials are continuing discussions to reduce the trade barriers, Bern said on Friday, as economists warned of job cuts as companies were effectively shut out of the United States by the duties.
Pilatus said the "massive additional costs and the resulting competitive disadvantages" versus U.S. and European competitors – were also causing increasing uncertainty among its customers.
The company said it would consider allocating PC-12 and PC-24 aircraft to other markets, while it was also accelerating its efforts to expand local production, including a planned assembly plant in Sarasota, Florida.
It said it was doing everything in its power to secure the jobs of its 3,000 employees, and would consider short-time working or adjusting its workforce from natural attrition.
(Reporting by John Revill and Paul Arnold, Editing by Louise Heavens)
