Billion-Dollar Blow: Embraer Scrambles as U.S. Hikes Import Tariffs

On July 18, 2025, Embraer’s CEO Francisco Gomes Neto confirmed that the recent decision by the United States to impose a 50% tariff on Brazilian aircraft exports forces the company to revise its 2025 revenue forecast.

Previously, Embraer expected to earn up to $7.5 billion this year from selling commercial and executive jets. With the tariff starting August 1, each plane sold to the US will effectively cost about $9 million more, threatening to shrink sales and investments sharply.

The US remains Embraer’s biggest market, accounting for approximately 45% of commercial plane sales and 70% of executive jet sales.

Since aircraft manufacturing depends heavily on US-made parts—about 45% of an Embraer airplane’s cost comes from American suppliers—these tariffs will disrupt not only Embraer’s operations but also its US supply chain.

Embargoed deliveries and canceled orders could result if prices become too high for buyers. The company fears the impact could rival losses during the COVID-19 pandemic, when revenues fell by nearly 30%.

This would deeply affect jobs in Brazil and thousands more in the US across related industries. Embraer’s leadership insists negotiations must continue to avoid retaliatory trade battles that could further strain relations and damage both economies.

The goal is to restore the zero-tariff status that has supported this global industry since 1979. As the August deadline nears, the aviation giant and both governments are under pressure to find a practical solution.

The stakes reach beyond Embraer’s bottom line—disruptions here could unsettle global supply chains, endanger thousands of jobs, and force US airlines to face higher costs or fewer aircraft options.

The coming weeks will reveal whether diplomacy can protect one of the world’s key aerospace players or push it toward severe economic disruption.

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