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1,000 Piper Aircraft manufacturing jobs, threatened by tariffs, saved with Haridopolos' help
Piper Aircraft is known as one of the "Big Three" brands in general-aviation manufacturing.
The company employs 1,500 in Vero Beach.
VERO BEACH — Piper Aircraft Inc., the largest private employer in Indian River County, stood to lose more than 1,000 jobs because of tariffs threatened against Canada. Some two-thirds of its workforce could have been laid off.
But behind-the-scenes efforts by U.S. Rep. Mike Haridopolos, R-Indian Harbor Beach, helped find a provision in a federal trade agreement that may have saved those jobs and perhaps the entire company.
Most imports from Mexico and Canada became subject to a blanket 25% tariff in March, when they were imposed by President Donald Trump, ostensibly to reduce fentanyl trafficking. As a result, Piper was bracing for added, seismic production costs for the M700 Fury, the company's flagship aircraft, which is powered by the Pratt & Whitney PT6A-52 engine.
"When we learned that a vital component of our aircraft — the Canadian-made turboprop engine used in our top models — was facing a tariff, the consequences were going to be immediate and real," Piper Aircraft President and CEO John Calcagno said April 18 in a statement to TCPalm.
The engine is only manufactured at Pratt & Whitney Canada, headquartered in Quebec. The engine can cost at least $250,000, according to Piper. Pratt & Whitney spokesperson Alexander Killeffer declined to comment when reached by email.
"Without access to that engine, production would slow. Deliveries would stall. Over a thousand local jobs would be in jeopardy," Calcagno said. "There is no American-made substitute available. And even if one existed, it would take years and tens of millions of dollars to certify it."
Calcagno reached out to Haridopolos. The two first spoke over the phone March 5, Haridopolos said, the day after tariffs against Canada were first imposed.
"It was a very dire situation," Haridopolos told TCPalm. "We immediately went to work."
Over a series of phone calls, Haridopolos worked with Piper officials and the White House to find a tariff exemption for the engine. Piper, ultimately, was able to take advantage of a "rules of origin" provision of the U.S.-Mexico-Canada trade agreement, or USMCA, which succeeded the North American Free Trade Agreement in 2020.
"We were able to work out an agreement under USMCA," Haridopolos said. "Piper would not be negatively impacted by the new tariff rules between the United States and Canada."
Piper faced added production costs to their flagship aircraft after tariffs were imposed by President Donald Trump because the engine is only manufactured at Pratt & Whitney Canada, headquartered in Quebec.
Pratt & Whitney already had certified its PT6A-52 engine under the USMCA exemption using the rules of origin, Piper spokesperson Alba Walcott said. The U.S. Trade Representative’s office verified that fact during a phone call with Piper, according to Haridopolos spokesperson George Alderman.
Those assurances made it possible for Piper to purchase engines without tariffs, Walcott said.
“The administration recognized the unique situation where they could only get that engine and parts from Canada," Haridopolos said, while defending the Trump administration's tariff strategy.
“I believe in fair and free trade. As the president has highlighted successfully, right now, that does not exist," he said. “If you believe in fair trade, you need to have a level playing field."
Tariffs can promote domestic manufacturing in some cases, he said.
"If it were up to me, there would be no free-trade barriers," he said. "Let the best company win."
Calcagno praised Haridopolos' team.
"This kind of problem-solving matters," he said in his statement. "It keeps American manufacturers competitive. It protects skilled labor. And in this case, it made a direct difference for our community here on the Treasure Coast. As a result, our workers can keep doing what they do best — building world-class aircraft."
Piper — considered by many to be one of the "Big Three" brands in general-aviation manufacturing, alongside Beechcraft and Cessna — moved its corporate headquarters to Vero Beach Regional Airport in 1982.
The company was acquired in 2009 by the Government of Brunei, a small country in Southeast Asia. It is one of the few remaining absolute monarchies in the world.
The company employs 1,500 workers at its headquarters. It sold 291 aircraft in 2024, according to a news release.
The company plans to build 50 of the M700 Fury airplanes in 2025, spokesperson Walcott said. The M700 Fury is a turboprop-powered airplane with a maximum cruising speed of about 346 mph. It costs about $4.5 million, Walcott said.
"Piper has invested in new manufacturing equipment," Walcott said, walking along the yellow-lined path through Piper's production floor on April 29. She pointed to one large, rectangular machine that cuts sheet metal into aerostructure components. "It is very precise," she said.
"They figured it out," she said, reflecting back on resolution of the tariff issue. "We are very blessed that was something they were able to find. And that we are able to keep our doors open."
https://www.tcpalm.com/story/money/business/2025/05/07/piper-aircraft-manufacturing-jobs-at-risk-by-trump-tariffs-were-saved/83172469007/
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