Embraer Warns US Tariffs Could Impact Aircraft Orders
Embraer (EMB, São José dos Campos U.E. Stumpf International) has warned that continued U.S. import tariffs could threaten future aircraft orders and delay deliveries if trade measures are not lifted, CEO Francisco Gomes Neto said in an interview with Bloomberg Television on October 26.
“We don’t have any cancellation issues at this point, but mid-term, this might happen,” Gomes Neto stated during the ASEAN summit in Malaysia. He estimated that the 10% tariff adds about USD 2 million per aircraft, with an overall financial impact of roughly USD 80 million this year.
The Brazilian aircraft manufacturer remains in talks with U.S. authorities to remove the tariff originally imposed under the Trump administration. Gomes Neto said Embraer is seeking equal treatment to that enjoyed in other key markets, including the United Kingdom, Europe, and Japan.
Embraer emphasized its deep ties to the U.S. aviation industry, supporting around 12,000 American jobs—2,000 directly and 10,000 indirectly—and supplying nearly 2,000 aircraft across the country. The company plans to source approximately USD 21 billion in components from U.S. suppliers over the next five years and attract around BRL 13 billion (USD 2.4 billion) in business from the American market.
In July, the White House decided not to raise tariffs on Brazilian aerospace exports beyond the existing 10%, a move Embraer described as confirmation of the “strategic importance” of its U.S. operations.
According to ch-aviation data, Embraer currently holds over 270 orders from U.S. airlines and lessors, including American Airlines, Avelo Airlines, Azorra, Republic Airways, and SkyWest Airlines.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com