US tariffs could have pandemic-like impact on planemaker Embraer

16/7/2025 7:14

The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the COVID-19 pandemic did, its CEO warned on Tuesday, flagging risks to U.S. partners.



Francisco Gomes Neto told reporters the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer's U.S. suppliers.



Sao Paulo-listed shares in Embraer, which had risen 3% earlier in the day, seesawed during his remarks, lost the gains before ticking back up 0.6%. They have fallen around 10% since Trump announced the tariffs, but are still up 33% so far this year.



The U.S. is the main market for Embraer, the world's third-largest planemaker after Airbus and Boeing , with U.S. clients buying 45% of the firm's commercial

airliners and 70% of its executive jets.