Embraer is waging a multi-pronged effort to eliminate U.S. tariffs on aviation/aerospace goods made in Brazil, company CEO Francisco Gomes Neto said today during a second-quarter earnings call. “Our focus is to restore aerospace back to zero tariffs,” he said, noting President Donald Trump’s 10% tariff on civil aircraft and components and 50% tariff on most other Brazilian products. Embraer took a $20 million hit for tariffs on its commercial and executive jets in the quarter and expects another $45 million blow in the second half should these levies remain on Brazil’s aerospace industry, he added.
According to Neto, Embraer is working with both Brazil and U.S. government trade negotiators to exempt aerospace from the new tariffs, as it had been since 1980 under the Agreement on Trade in Civil Aircraft. He also pointed out similar zero-tariff deals for aerospace recently negotiated between the U.S. and the UK, EU, Mexico, and Canada. “We are positive of a good resolution on tariffs,” Neto predicted.
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