The rates imposed by US President Donald Trump already affects Brazilian companies. The Alaska Airlines airline suspended the delivery of two Embraer jets to avoid high cost. The aircraft would reach American soil in May.
The Airplanes, model Embraer 175, would be destined to Horizon Air, an Alaska Airlines regional subsidiary. With the suspension, the company had to cancel more than a dozen flights a day.
Brazilian exports to the United States have been subject to a 10% rate since April, when Trump has announced a universal fare applied to all countries. Some markets had larger overcrowders, such as China and the European Union, but Trump announced a tariff truce for both while negotiating new terms of trade agreements.
“Given the uncertain economic environment, we are focused on controlling what is within our reach – including costs, productivity, operational performance and taking care of our passengers in the best way possible. As part of this effort to control our costs, Alaska will not accept additional rates imposed on tariffs along our supply chain,” Alaska Airlines said in a statement to CBS News.
Without the new aircraft, Alaska said it will need to cancel 14 flights a day by the end of July, when it is the summer holidays in the United States. Horizon operates all its flights with Embraer jets. Alaska operates a fleet composed exclusively of Boeing planes.
President Trump’s tariff agenda has disrupted supply chains in various sectors and forced many companies to increase prices for consumers to protect their profit margins. The aviation industry also warned that these tariffs would affect their business.
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American Delta Air Lines has also taken steps to avoid paying tariffs on new aircraft earlier this year. In April, he received new Airbus A350 aircraft delivered from France to Japan and operated them internationally before taking them to the US. As aircraft were not new when they arrived in the US, the airline did not have to pay tariffs about them.
