Business AviationTrump's 50% Import Tariff Threat to Brazil Could Hit Embraer Hard, Analysts Say
US President Donald Trump’s threat to Brazil on Wednesday to impose a 50% import tariff on Brazilian products could severely impact Embraer, analysts say.
Trump sent a letter to the Brazilian government demanding an end to the lawsuits against former far-right President Jair Bolsonaro, in addition to complaining about alleged censorship in the country’s judiciary.
The US president also stated that the trade balance between the two countries would be unbalanced in Brazil’s favor, but government figures show otherwise.
The additional tariff will take effect August 1st for “any and all Brazilian products shipped to the United States,” the letter states.
More than 200 E175 ordered
With a large fleet of aircraft operating in North America, Embraer’s country is one of its largest global markets, particularly for business and regional jets.
Approximately three out of four of the company’s business aircraft have been sold to US customers, while the 76-seat E175 jet is currently the only new model available that meets the scope clause for US airlines.
There were at least 150 E175s pending delivery as of March, but the total number of aircraft on order increased in June when regional carrier Skywest secured an additional order for 60 jets.
The company has been posting increasingly robust figures since a joint venture agreement with Boeing fell through in 2020.
In a recent interview, Francisco Gomes Neto, CEO of Embraer, stated that the 10% tax initially imposed on Brazil had had little impact on the company’s finances, as most of its aircraft components are produced in the US.
There’s also a business aircraft assembly line in Florida, specifically to serve local customers.
Despite this, investment banks are already anticipating a 13% reduction in net income for 2026. The company’s shares closed down more than 4% on Wednesday, and the decline is expected to continue through the market open.
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Ricardo Meier
Creator of the website that started in 1996 as a magazine. He also writes on Brazilian websites AUTOO, MOTOO and MetrôCPTM.
