Embraer Lobbies for Tariff Relief

Executives press for reinstatement of zero-duty rule after 10 percent levy.

An E175
An E175 [Credit: United Airlines]
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Key Takeaways:

  • Embraer is actively negotiating with U.S. and Brazilian officials to reinstate zero-tariff status for its civil aircraft trade, emphasizing its support for 13,000 current U.S. jobs and a projected 5,500 additional jobs by 2030, alongside an $8 billion trade surplus for the U.S.
  • Despite fully factoring the 10% tariff into its 2025 forecasts, Embraer's full-year outlook remains unchanged, attributed to stable supplier costs and logistical work-arounds shielding customers from the duty.
  • The company plans to invest an additional $500 million in U.S. operations and may explore local assembly of its KC-390 transport, potentially creating 2,500 U.S. jobs if a U.S. Air Force contract is secured; tariff reinstatement would further boost 2025 results.
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Embraer told investors during its second-quarter earnings call that it is conducting “advanced conversations” with high-level officials in Brasília and Washington to restore the zero-tariff status that governed its civil-aircraft trade for more than 45 years. President and CEO Francisco Gomes Neto said the company supports 13,000 U.S. jobs today and expects to create another 5,500 by 2030 through planned investments. He also highlighted an $8 billion trade surplus in favor of the U.S. market.

On the call, Chief Financial Officer Antonio Carlos Garcia said Embraer had fully factored the 10 percent tariff into its 2025 forecasts, with about 20 percent of the expected $65 million impact already absorbed. He noted supplier costs have remained stable and that the company’s full-year outlook is unchanged. Garcia added that logistical work-arounds such as free-trade zones and temporary imports have helped shield customers from the duty.

Embraer said it plans to invest an additional $500 million in U.S. operations and to explore local assembly of its KC-390 transport if a U.S. Air Force contract materializes. Gomes Neto said such a move would add roughly 2,500 American jobs. Executives said reinstating a zero-tariff environment would deliver upside to 2025 results and strengthen Embraer’s position in the regional-jet market and beyond.

Matt Ryan

Matt is AVweb's lead editor. His eyes have been turned to the sky for as long as he can remember. Now a fixed-wing pilot, instructor and aviation writer, Matt also leads and teaches a high school aviation program in the Dallas area. Beyond his lifelong obsession with aviation, Matt loves to travel and has lived in Greece, Czechia and Germany for studies and for work.
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