Airport Technology

Embraer raises concerns over US tariffs impacting aerospace industry

Earlier this month, US President Trump announced a minimum 10% tariff on all imports, with some rates potentially hitting 50%.

Embraer, the Brazilian aerospace manufacturer, has expressed concerns regarding the recent tariffs imposed by the US, which are expected to introduce additional complexity and costs for both the company and its US customers.

This statement was made by Embraer’s CEO, Francisco Gomes Neto, during an event in Sao Paulo, reported Reuters.

Earlier this month, US President Donald Trump announced a minimum tariff of 10% on all imports, with specific rates potentially reaching up to 50%.

This move is part of an effort to revitalise the US industrial base, which the President claims has diminished over years of trade liberalisation.

The introduction of these tariffs has prompted aerospace suppliers and manufacturers to review their contracts to assess their exposure, particularly as the industry has largely been insulated from such duties until now.

Historically, the aerospace sector has operated under a 1979 treaty that allows for zero-duty trading between the US and Canada, excluding Mexico, aside from a brief tariff conflict related to subsidies for Airbus and Boeing in 2020 and 2021.

Neto remarked: "We have to be realistic about these tariffs. If it continues like this, this will bring more complexity and costs to companies, including Embraer."

He also indicated that there may be opportunities for negotiations aimed at alleviating tariffs on aviation products.

While Brazil is subject to a 10% tariff, it has been noted that US importers of Embraer’s commercial and business jets may not incur this full amount, as a significant portion of the aircraft's components are sourced from the US, which can be deducted from the duties, according to Neto and industry sources.

In October 2024, Embraer opened a new service centre at Perot Field Alliance Airport in Fort Worth, Texas.

This investment in maintenance, repair, and overhaul (MRO) services aims to support the growing fleet of E-Jets in the US.

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