At the time, revenue fell 30% and manufacturer had to reduce the staff around 20%
The 3rd largest aircraft manufacturer in the world, behind only Boeing and Airbus, Embraer estimates that the United States announced the United States may have an impact on the company similar to the pandemic. At the time, the company had about 30% revenue drop and reduced the staff around 20%.
According to the company, the tariff should raise the price of each plane sold to the US by about $ 50 million. Considering the period by 2030, the impact could mean $ 20 billion in tariffs. According to the company’s executive director, Francisco Gomes Neto, the amendment in aircraft prices should lead to cancellation of orders, delivery posting, production plan review, cash generation fall, and investment reduction.
“There is no way to relocate orders from US clients to other markets. There is no way to relocate these orders. Airplane is not commodity. The largest executive plane market is in the United States. There is no way to reposition this to other markets.”said Gomes on Tuesday (15.Jul.2025).
Exports to US customers represent 45% of commercial jet production and 70% of the company’s executive jets. According to the CEO, the 50% tariff could make aircraft sales unfeasible to the United States. “Fifty percent rate is almost an embargo. It is not just for Embraer, it is for any company. Fifty percent make exports make exports to any country. It is a very high value. And for plane, it is even more impactful due to the high added value of the product.”declared Gomes.
Possibility of negotiation
The tariff over Brazil will also reach US producers, and this could help in any negotiation, said Embraer’s executive director. According to him, from the next 5 years, until 2030, Embraer has the potential to buy US $ 21 billion in US equipment to equip the aircraft produced by the Brazilian company: “That’s why we think a negotiated solution is possible”.
“We went there [nos Estados Unidos] To show you this. They understand this, but they want to see a bilateral negotiation advancing, as they are looking for in many other countries ”he said.
Gomes said he was confident in an agreement between Brazil and the United States, such as the recent agreement announced by Americans and the United Kingdom, with the return of zero fare to the aeronautical sector.
“There were concessions from both parties and, in the case of the aerospace sector, the rate was 10%. We are optimistic about the situation, and this example of the agreement between the United Kingdom and the United States is a good base for Brazil as well.”he added.
With information from.
