Francisco Gomes Neto argues that US and Brazil negotiate tariffs and says it is against Brazilian retaliation
Embraer CEO, Francisco Gomes Neto, said the company talks to review revenue projections to 2025 because of the US decision to impose 50% tariff on Brazilian products. He declared to be against the idea of Brazil retaliation.
Embraer had designed one in 2025.With this new 50%rate, of course, we will have to review. There is no way to. Not yet [tem como calcular o novo número]. The risk is that, because of a very high rate, the customer does not want to receive the plane”He said in an interview with“C-Level”, Journal Videocast .
Embraer is one of the tariff announced by US President Donald Trump. Americans are the main aircraft importers in Brazil.
When asked about the possibility of Brazil retaliation if the tariff is maintained, Gomes Neto replied: “Personally, I’m against. I think it has to exhaust the negotiation 1st, and that is exactly what our government is doing. I am optimistic that it reaches a conclusion, so we would not need to move on to this other stage that, I imagine, will further elevate the level of tension and stress in the relationship [entre Brasil e EUA]”.
He argues that Brazil negotiates “in a way that is good for the 2 sides“According to him, the government of (PT) is”listening to all parts to understand the impacts in each sector or each company”To define how to act.
Gomes Neto in which the Vice President and Minister of Development, Industry, Commerce and Services (PSB) talked about US fare with industry representatives.
“We have a very positive expectation. The government is engaged, understands the importance and relevance of timing. We are helping to help build a way for the problem to be solved by the end of July”He said.
The rate comes into force on August 1.
“The aviation sector has been working with the zero rate since 1979, it is a very globalized sector. We buy and sell pieces from all over the world. Our planes have a very high US content, in the order of 45% of the cost of the plane. We are always looking for other alternatives, but the best solution for us is a government negotiation showing the benefits that aviation brings, both for Brazil and the US, and to restore the zero aliquot in the aviation sector”He said.
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