Embraer rules out E2 jet assembly line in the US due to tariffs

Embraer does not plan to establish a US assembly line for its E2 series jets, citing the impact of a 10% tariff on aircraft imported into the country. Instead, the company will concentrate on eliminating the tariff through existing benefits for US suppliers and customers, while maintaining its current production structure, the CEO Francisco Gomes Neto told Reuters last week.

According to Embraer, setting up a new E2 assembly line in the US would require significant investment, which the manufacturer says would reduce the competitiveness of its jets. Currently, Embraer operates business jet assembly lines in Florida, but its E2 commercial jets are produced in Brazil.

To address the tariff issue, Embraer has outlined a plan involving US$21 billion in purchases from US suppliers, alongside $13 billion in exports to the US over the next five years. The company hopes these actions will support efforts to remove the tariff, rather than shifting assembly operations.

Back to triple-digit deliveries

Embraer aims to reach 100 annual commercial aircraft deliveries by 2028, a level last achieved in 2017. Supply chain disruptions remain a challenge, with delays in engine and fuselage component deliveries affecting production flow. Despite these obstacles, Embraer has increased annual deliveries since 2021, following a pandemic-induced slump.

For 2025, Embraer projects deliveries of 77 to 85 commercial jets, up from an estimated 73 in 2024. Gomes Neto noted that production in 2026 is also expected to face challenges due to persistent supply chain issues.

The company’s order backlog remains robust, with production slots nearly filled through 2028. Recent firm orders include 50 E195-E2 aircraft for Avelo Airlines, strengthening the backlog further. Embraer also reports ongoing sales campaigns and potential new E2 orders soon, with recent customers such as ANA and SAS.

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