Potential US tariffs threaten severe impact on Brazilian jet maker Embraer

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Potential US tariffs threaten severe impact on Brazilian jet maker Embraer

Policy

Francisco Gomes Neto CEO at Embraer | Official Website

By Sky Industry News

Jul 23, 2025

The United States remains a crucial market for Embraer, accounting for 45% of the company's commercial jet and turboprop exports. However, the ongoing threat from President Donald Trump to impose a 50% tariff on all Brazilian goods could severely impact Embraer's operations.

Embraer, based in Brazil, has warned that escalating tariffs could effectively act as a trade embargo against them. The company foresees financial challenges similar to those experienced during the COVID-19 pandemic's travel restrictions.

President Trump's inconsistent approach to tariffs has already posed challenges for US trade partners. Airbus and American carriers have had to navigate additional costs due to potential tariffs. These tariffs currently add approximately $9 million USD per Embraer Regional Jet (ERJ) delivered, potentially totaling $3.6 billion by 2030.

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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.