Embraer's mega-business jet customer secures order despite Trump's tariff threat

Embraer shares fell significantly on Thursday after US President Donald Trump announced an additional 50% tariff on products imported from Brazil.

The United States is the largest buyer of E175 regional jets and, especially, of the Praetor and Phenom business jet lines.

But at least one customer expressed confidence in maintaining the mega-order signed in February: Flexjet. The shared-aircraft company ordered 182 Phenom 300, Praetor 500, and 600 aircraft, plus 30 purchase options, in a deal estimated at US$7 billion.

Kenn Ricci, chairman of Flexjet, told Reuters in a statement that the company’s associated buyers are unlikely to change their decisions and that the tariffs are unlikely to affect existing agreements in the short term.

Flexjet is expected to begin receiving the new aircraft in 2026, and some of them will undergo final assembly at Embraer’s Florida facility, reducing the incidence of tariffs.

More than 200 E175s pending delivery

Embraer also stated that it is still evaluating the potential impacts of the measure, which is expected to be implemented on August 1st.

Financial market analysts estimate that the company could see a hit of approximately US$150 million to its earnings before interest and taxes by the end of the year.

Regarding the E175 jets, which are widely operated on the regional flight networks of major U.S. airlines, there are more than 200 aircraft pending delivery.

Embraer has four previous contracts in effect, the largest of which is with American Airlines, which ordered 90 aircraft in February of last year.

Republic Airlines has 35 E175s pending delivery, while Alaska Air has another three jets, which will only be delivered starting in 2026.

Skywest, meanwhile, still has 14 E175s from the previous order but has just closed a new deal for 60 aircraft.

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