Embraer (EMB, São José dos Campos U.E. Stumpf International) forecasts that potential tariffs the US government imposes on Brazil could generate an additional cost of around USD9 million per exported aircraft to this country, chief executive Francisco Gomes Neto told reporters.
Potential impacts could total around BRL2 billion reais (USD358 million) in 2025 alone, making shipments of E175s to the United States “unfeasible,” Reuters quoted him as saying. However, no order in the United States, where the type is a workhorse due to regional market scope clause limitations, has been cancelled so far.
ch-aviation data shows four US carriers have orders for a total of 202 E175s: American Airlines expects ninety, Horizon Air three (and recently resumed taking deliveries of the type after a brief pause due to the ongoing tariffs), Republic Airways thirty-five, and SkyWest Airlines seventy-four.
Furthermore, private operator NetJets Aviation has orders for four Phenom 300Es. However, bizjets could be partially deductible and avoid full tariff impact, as some jets are assembled in Florida.
“It is a lose-lose situation,” Neto said, explaining that the tariffs would also hurt US suppliers of components such as engines and avionics. The Brazilian manufacturer expects that if the tariff threat becomes real at the magnitude that it is currently discussed (a 50% tariff on all Brazilian exports starting in August), the overall impact would be “similar to that of COVID-19 in terms of the decline in the company’s revenues.”
"It's a very new situation, so everyone is trying to understand this process and working toward reaching a solution within the deadline,” the CEO finalised.
