US exempts Embraer from planned 50% import tariff amid industry pushback

Despite this exemption for Embraer jets, other Brazilian imports such as oil and coffee remain subject to new tariffs under President Donald Trump's administration. This is expected to increase costs for American consumers in those sectors. The US also imports both sustainable aviation fuel (SAF) and standard aviation fuel from Brazil; rising fuel prices may further affect airline operations.

Wade Steel, Chief Commercial Officer of SkyWest Airlines, commented before the exemption was announced: “If the 50% tariff with Brazil is implemented, we plan on working with our major partners and Embraer to delay delivery until the tariff situation is resolved. All parties are motivated to work together on the tariff issue.”

There has been criticism within the administration about imposing tariffs on aerospace goods. Secretary of Transportation Sean Duffy argued last month that such measures violate a longstanding 1979 agreement between Brazil and the US that called for zero tariffs on aerospace products. Airbus CEO Guillaume Faury also spoke out against these trade barriers: “I want to believe that the end game will be these tariffs on civil aerospace goods going back to zero. When and how remains to be seen.” Both Boeing and Airbus have cautioned that new import fees would negatively impact American aerospace companies as well as global supply chains.

Currently, only Airbus’s assembly facility in Mobile, Alabama has faced significant cost increases due to tariffs affecting parts imports. Major US airlines such as American Airlines and Delta have so far avoided paying extra fees for their aircraft purchases; in some cases Airbus has absorbed additional costs or rerouted deliveries through foreign airports.

Industry observers are watching closely as tensions continue between Washington and its trading partners over tariffs affecting aviation manufacturing worldwide.