Eve Considers U.S. Factory to Sidestep Tariffs—Will Embraer Follow?

Eve Air Mobility, an Embraer subsidiary, is weighing the option to build electric air taxis in the U.S. to dodge rising trade barriers. This move illustrates how U.S. tariffs on Brazilian aerospace imports are shaking up the industry on both sides of the equator.

Eve’s leadership made clear that shifting assembly to America could protect its orders. Eve relies heavily on U.S. customers; nearly 70% of its $14billion backlog comes from American buyers.

The 50% import tariff—scheduled for August 2025—could price their vehicles out of reach for airlines and air taxi operators. Eve already designed its aircraft so final assembly can happen in the destination country, adding logistical flexibility.

U.S. customers now await their first deliveries, planned for 2027, but the looming tariffs have forced Eve to consider U.S. manufacturing as essential for maintaining business growth and access to its largest market.

The situation sparks new questions about parent company Embraer. While Embraer downplays immediate effects, it acknowledges operational adjustments are necessary.

About 60% of Embraer’s revenue comes from North America, leaving the company exposed if tariffs persist. Embraer, known for its commercial and executive jets, points out that nearly half the value of each aircraft is already American.

This production mix helps offset some tariffs, but management warns further cost reductions and changes are underway.

Embraer Faces Pressure as Tariffs Threaten Profits

Embraer recently opened a new U.S. maintenance facility in Texas and maintains a smaller jet-assembly site in Florida, yet no formal announcement has been made about shifting broader jet production to the U.S.

Embraer’s CEO has told investors that tariffs could shave nearly 1% off profit margins in the coming quarters, especially for business jets more heavily impacted than commercial models.

Orders remain strong, but analysts caution that if U.S. buyers balk at higher prices, the company may need to expand its American footprint to keep the business.

The threat is not only to Brazil. American jobs connected to Embraer’s suppliers, and cities that host their sites, are at stake too. In short, Eve’s potential move puts a spotlight on how tariffs can force companies to rethink their entire supply chains.

Embraer may be next in line if trade frictions do not ease, showing how far-reaching the cost of tariffs can be for both countries’ jobs, technology, and investment.

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