Embraer's CEO Warns Proposed Tariffs Would Make Shipments to U.S. Airlines "Unfeasible"
SAO PAULO—Brazilian aircraft manufacturer Embraer's CEO said that President Trump’s proposed 50% tariff on Brazilian exports could deal a blow to Embraer’s revenue that mirrors the impact experienced during the COVID pandemic. He warned the policy, set to take effect in August, would act as a trade embargo on the company’s commercial jets—particularly its E1 narrowbody aircraft—rendering U.S. shipments unfeasible.
Neto said the tariffs could trigger order cancellations, delivery delays, reduced investment, and potential job cuts, while also imposing an added cost of roughly $9 million per jet exported to the U.S. The total financial burden could climb to 20 billion reais (~$3.6 billion) by 2030 if applied across all Brazilian goods.
The U.S. is Embraer’s largest market, accounting for 45% of its commercial jet exports and 70% of its executive jet exports. “Given the relevance of this market, we estimate that if this moves forward at this magnitude, we will have an impact similar to that of COVID-19 in terms of the decline in the company’s revenue,” Neto said.
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