Airplane manufacturer was out of tariff decreed by President Donald Trump, but is still subject to 10%
The Brazilian aircraft manufacturer, which has escaped the 50% tariff imposed by the United States, rules out layoffs in Brazil this year and is confident of reducing the current 10% tax on aircraft and parts that exports to Americans.
The statement was made this 3rd (5.ago.2025) by the company’s executive director, Francisco Gomes Neto, during the presentation of the results of the 2nd quarter of the company.
“Our focus is on really restoring the zero fare. We are very happy to go from 50% to 10%, which has greatly reduced the impact to our customers. We are working with them to deliver the aircraft. But in parallel, we are striving hard to restore the zero fare.”these.
Embraer employs 18,000 people in Brazil. Since April, the company, which exports half of production to the United States, has been subjected to a 10% tariff determined by the US president (Republican party).
In recent weeks, there has been a fear that the taxation will rise to 50%. But on Wednesday (30.Jul.2025), what aircraft, engines, parts and aviation components are left out of the tariff.
Job
According to the company, the 10% charge that began to effective in April means a cost of $ 65 million, about $ 350 million. Of this impact, 20% were felt in the first half and 80% should be noticed in the remainder of the year. This amount is charged to parts of executive aircraft that Embraer sells to the company’s subsidiary in the United States, but it is a relief compared to the 50% tax from which the company has escaped.
“We go back to a more manageable situation, so much so that we have already included the impact of tariffs on our financial projections. We are keeping our guidance [projeção] For the year, and to serve you we have to deliver all the planes that are planned. At the moment, any changes are completely out of our plans, frame reduction because of production reduction ”said Neto.
Regarding commercial aircraft sold to the United States, the cost is paid by the company that buys the aircraft, which ends up making the product more expensive.
Main market
The United States is the largest aviation market in the world and absorb 70% of the demand for Embraer executive jets and 45% of commercial aircraft.
The company’s executive director points to employment and investment generation in the United States as a asset for the Trump government to return to the zero fare.
Embraer employs almost 3,000 people on American soil. Including the local supplier chain, the contingent reaches 13,000. The company plans to invest US $ 500 million, about R $ 2.8 billion, in Dallas, Texas, and Melbourne, Florida, over the next 5 years and hire 5,500 more employees by 2030. Estimates were made, according to Neto, on calculations without the 10%tariff.
The executive said that if the US government decides to include military planes such as the KC-390 in its air fleet, Embraer projects another $ 500 million for a new assembly line and 2,500 jobs.
The company also emphasizes the importance of its E175 aircraft, up to 80 seats, considered essential for American regional aviation.
“We have good expectation that this will happen”evaluates the executive director of the return of the zero fare, emphasizing that the estimate is a positive commercial balance of $ 8 billion for Americans by 2030. That is, in the process of manufacture of aircraft, Embraer spends more shopping in the United States than with sales there.
With information from
