50% tariffs on Brazil are expected to cause an impact of US$ 9 million per aircraft sold by Embraer.

• Brazilian Embraer is one of the most exposed companies to the 50% tariffs announced by US President Donald Trump.
• 60% of its sales come from the US market, the commercial and operational impact of these tariffs alone is significant.
• Brazil’s Embraer exports its E1 commercial aircraft models to North American airlines.
• The company assembles and completes its executive jets in the state, including its Praetor and Phenom lines.
• A study suggests that 40% of Phenom and 60% of Praetor jets will be affected.

50% tariffs on Brazil could impact Embraer by $9 million per aircraft sold as per the Brazilian Minister of Ports and Airports, Silvio Costa Filho, who expressed concern about the possible impacts on the national aviation sector.

The tariff hike was announced on Wednesday (9) by US President Donald Trump, and is expected to come into effect on August 1.

U.S. President Donald Trump said that the U.S. would impose a 50% tariff on all imports from Brazil after a spat this week with his Brazilian counterpart Luiz Inacio Lula da Silva.

Costa Filho highlighted that, if the 50% surcharge is maintained, each Embraer aircraft exported to the US could suffer an impact of around US$9 million, directly damaging agreements already signed.

"The sector that has me concerned is the aviation sector. Brazil has Embraer, which has a number of sales to the American market, and if this tariff goes into effect, it would mean an impact of almost $9 million per aircraft... We have been talking within the government to consider emergency measures to preserve, above all, the Brazilian aviation sector, preserving the local industry," he stated.

In a letter, Trump linked the tariffs to Brazil’s treatment of former President Jair Bolsonaro, who is on trial over charges of plotting a coup to stop Lula from taking office in 2023.

Revealed by the first-quarter financial results, Embraer has 181 commercial aircraft already ordered for delivery to six US airlines: American Airlines, Republic Airlines, Horizon Air, Azorra, AirCastle, and SkyWest.

24% of the company's revenue comes from the North American aviation market. Worth mentioning here, there are still 60 planes ordered by SkyWest during the Paris Air Show in June, in a contract valued at US$ 3.6 billion.

The U.S. is Brazil’s second-largest trading partner after China and the tariffs are a major increase from the 10% announced in April.

On Monday, Lula pushed back against Trump after the U.S. leader threatened to impose an additional 10% tariff on the BRICS group of developing nations, which he called “anti-American.”

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