Embraer Warns U.S. Tariffs Could Add $9M Per Jet Cost

Embraer has warned that proposed U.S. tariffs on Brazilian exports could raise the cost of each aircraft shipped to the United States by as much as USD9 million, threatening the viability of its key E175 deliveries. CEO Francisco Gomes Neto said the potential financial impact could reach BRL2 billion (USD358 million) in 2025 alone, making shipments of E175 jets to U.S. customers “unfeasible.”

The E175 is a mainstay in the U.S. regional jet market due to scope clause limitations, and no orders have been canceled yet. According to ch-aviation data, four U.S. airlines have a combined 202 E175s on order: American Airlines (90), Horizon Air (3), Republic Airways (35), and SkyWest Airlines (74). Horizon Air recently resumed deliveries after a brief pause.

Additionally, private jet operator NetJets Aviation holds orders for four Phenom 300Es. Business jets could be less affected by tariffs, as some are assembled at Embraer’s facility in Florida, potentially reducing their exposure.

Neto described the trade situation as a “lose-lose,” warning it would harm not just Embraer but also U.S. suppliers of engines, avionics, and other components. If the U.S. enacts the proposed 50% tariffs starting in August, Embraer expects a revenue impact comparable to the COVID-19 downturn.

“This is a very new situation,” said Neto. “Everyone is trying to understand the process and working toward a solution before the deadline.”

Embraer continues to engage with stakeholders in hopes of avoiding long-term disruptions to its U.S. operations and supply chain.

Related News: https://airguide.info/category/air-travel-business/airline-finance/

Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com