Air Transport

Embraer Negotiates End of 10% U.S. Aircraft Tariff, Says CEO

Francisco Gomes Neto says the added cost is hurting orders and calls for parity with other international markets.
Ricardo Meier

Embraer is in talks to end the 10% tariff on its aircraft in the United States, CEO Francisco Gomes Neto told Bloomberg. The executive said the duty, imposed under the Trump administration, adds a substantial cost per jet and could discourage deliveries and new sales.

Gomes Neto noted that the tariff raises the price of each aircraft by about $2 million, prompting some customers to delay or reconsider purchases. He said Embraer is seeking the same conditions it enjoys in markets such as the United Kingdom, Europe, and Japan, where no such tariffs apply.

The CEO emphasized that Embraer has around 2,000 aircraft operating in the United States and supports 12,000 jobs—2,000 directly and 10,000 indirectly. So far, no orders have been canceled because of the tariff, he added.

Francisco Gomes Neto

Over the next five years, Embraer expects to purchase $21 billion in components from U.S. suppliers while attracting roughly R$13 billion from the U.S. market, a figure the company describes as a strong net gain for the country.

Gomes Neto also said Embraer is in discussions with the U.S. Air Force (USAF) to offer the KC-390 as a contender for transport and aerial refueling missions.

If selected, Embraer plans to invest $500 million to produce the KC-390 in the United States.

KC-390 with a rigid boom aerial refueling system (Emb)

The CEO acknowledged ongoing supply chain bottlenecks. To address them, Embraer has deployed teams to work directly with suppliers to strengthen operations.

“We’ve been using artificial intelligence to solve supply chain challenges,” Gomes Neto said. The company expects double-digit growth in the coming years but anticipates a steadier pace through the end of the decade.

About the Author

Ricardo Meier

Ricardo Meier

Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.

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