Potential US tariffs threaten severe impact on Brazilian jet maker Embraer

Embraer expects over 3,000 deliveries in its commercial jet and turboprop segments over the next two decades. US airlines heavily rely on models like ERJ-135/145 and E170/175 for their regional fleets. Francisco Gomes Neto commented on the situation: "Given the relevance of this market, we estimate that if this [tariff plan] moves on at this magnitude, we will have an impact similar to that of COVID-19 in terms of the decline in the company's revenue."

The subsidiary operators of major US airlines depend on Embraer's aircraft for routes connecting remote or low-traffic destinations across America and some international airports. A halt in new aircraft supply would affect not only Embraer but also a significant segment of the US aviation industry.

Besides being a leading manufacturer of regional jets, Embraer is also recognized globally for its executive jets and defense aerospace contributions. The company provides luxury private jets like Phenom and Praetor models and builds fighter jets under agreements with international partners.

Embraer's CEO Francisco Gomes Neto leads from their headquarters in Sao Paulo, Brazil. Founded in 1969, Embraer's product lines include several renowned models such as the Embraer 170 series and its military variants.