Embraer CEO Francisco Gomes Neto warned that potential US tariffs on Brazilian exports could add around USD9m in costs per exported aircraft. The estimated total impact could reach BRL2bn reais (USD358m) in 2025, making shipments of the E175 to the United States “unfeasible.”
Four US carriers have orders for a total of 202 E175s, with American Airlines ordering ninety, and SkyWest Airlines placing an order for seventy-four.
Neto described the situation as a “lose-lose” for both Embraer and US suppliers of components like engines and avionics, should the tariffs be enacted.
Neto concluded that the upcoming tariff threat could have an impact on revenue comparable to the decline caused by COVID-19.
Embraer CEO Francisco Gomes Neto shared, “It is a lose-lose situation. The overall impact would be similar to that of COVID-19 in terms of the decline in the company’s revenues. It’s a very new situation, so everyone is trying to understand this process and working toward reaching a solution within the deadline. Potential impacts could total around BRL2bn reais in 2025 alone.”
