Embraer E175 Reaches 1,000 Orders Under Tariff Threat

Embraer released its second-quarter financial results on Monday, reaching its largest commercial aircraft order backlog—US$13.1 billion.

The string of good news included the milestone for the E175 jet, which reached 1,000 orders in its 20-year history, thanks to an order for 60 aircraft from SkyWest.

The variant is by far the most successful in the E-Jet family, with 2,328 aircraft on order, 43% of which are E175s. Following it is the E190-E1, with 568 orders, and the E195-E2, which reached 330 aircraft in June.

The number would be slightly higher if Nigeria’s Air Peace hadn’t decided to replace three E175s with the larger E195-E2.

As of June, Embraer had 792 E175s, leaving a backlog of 208 aircraft. Of these, 202 are from US airlines, the vast majority from American Airlines (90 aircraft) and SkyWest (74).

Tariff threats

This is precisely why, despite the record, Embraer’s 76-seat jet is currently in a state of suspense, amid tariff threats from US President Donald Trump.

The Republican announced that he will add 50% tariffs on goods imported from Brazil, which directly affects Embraer aircraft, despite the fact that many of their components come from the US.

The extra tax, of a political nature, is still subject to behind-the-scenes negotiations, and it’s unclear whether it will be implemented as announced starting August 1st. However, the climate of uncertainty is already affecting some of Embraer’s forecasts.

For US regional airlines, the tariffs are terrible news, as they increasingly rely on the E175 to maintain and expand their network, as there is no local competitor for the Brazilian aircraft.

And for the planemaker, there is no equivalent alternative for the North American market, leaving the E175 in the strange position of being a commercial success whose future is threatened by factors outside the market.

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