Chad is the editor of AINalerts, AIN's daily business aviation newsletter, and is also the news editor at AIN Media Group.&nbsp;He has been writing about aviation, with an emphasis on business aviation, since 1994. Chad started his writing career at The Avion,&nbsp;the&nbsp;student newspaper at Embry-Riddle Aeronautical University in Daytona Beach, Florida, serving as editor-in-chief before graduating with a bachelor's in aeronautical science. After a stint as managing editor at Professional Pilot&nbsp;magazine, he joined&nbsp;AIN in late 1998. Chad holds a commercial pilot certificated with instrument and multi-engine ratings, and he also is a CFI/CFII. He lives and works from his home in Venice, Florida.

Online Editor

Chad Trautvetter

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.
His pitch to U.S. negotiators includes $500 million of planned investments in its business jet production plant in Melbourne, Florida; commercial MRO facility in Dallas; and a potential KC-390 production line in the U.S. if the military twinjet is purchased by the U.S. Air Force as an “agile combat asset.” Of that total, $90 million is earmarked for the Melbourne facility to expand Phenom 100EX and 300E production and enlarge the flight prep area for the Praetor 500 and 600, as well as add a paint booth that can accommodate both Phenoms and Praetors.
Neto is also playing up to U.S. negotiators that, because its aircraft have about 40% U.S. content, Embraer will have an $8 billion trade surplus in the U.S.’s favor over the next five years. Because U.S. content is not tariffed, Embraer has also been able to mitigate the 50% levies down to about 10% in practical terms.
“We are emphasizing ‘economic robustness’ to U.S. negotiators,” he said. Neto added that continued tariffs on Embraer will eventually cause it to pull back on investments in the U.S. and could result in fewer orders for U.S. content as aircraft sales are affected by the levies. “So the tariffs will also negatively affect the U.S. in the long run,” he concluded.
Trump has explicitly tied the high tariff imposed on Brazil since August 1 to his personal opposition to the prosecution of former Brazilian President Jair Bolsonaro.

Issues regarding financing of aircraft; aviation insurance; tax issues for aircraft operators; new companies and people in the aviation financing and insurance industries.

Embraer Negotiating for Zero Tariffs on Brazil Aerospace

U.S. tariffs on Brazil goods hiked to 50%

Embraer is waging a multi-pronged effort to eliminate U.S. tariffs on aerospace goods made in Brazil, emphasizing U.S. investment and a favorable trade surplus.

2024 Corporate Aviation Leadership Summit

Amy Wilder

News and issues relating to business, corporate and private aviation, primarily regarding turbine-engine-powered airplanes and helicopters. Subjects include aircraft, engines, maintenance, operations, personnel, acquisitions, accidents, safety, security, and training.

Pre-tax earnings for service group climb 20.6%

NetJets, FlightSafety Revenue Rises in First-half 2026

Hanneke Weitering

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News and developments about aircraft engines, including turbofan, turboprop, turboshaft and piston.

Financing supports Eco Caravan certification and hybrid-electric APU development

Ampaire Raises $19 Million for Hybrid-electric Airplanes

Kerry Lynch

Moody's assigned a Ba2 credit rating, up from Ba3, while maintaining a positive outlook

Moody's Upgrades Bombardier as Balance Sheet Improves

Matt Thurber

News and information on safety procedures and concerns.

Decision support system helps pilots assess risks up to 14 days ahead of planned flight

PlaneWX Pilots Save with 5X5 Insurance Safety Rewards

Component sales boosted Beta’s second-quarter revenue

Beta Is Turning Its eVTOL Competitors into Customers

Charles Alcock

UK group says it will complete Valo eVTOL’s critical design review this year 

Vertical Extends Cash Runway with Fresh eVTOL Funding 

Buyers urged to seek guidance, consider financing before finding an aircraft

IADA Panel: Financing Has Evolved Beyond a Buying Tool

Howard Hardee

News and issues relating to civil and military unmanned aircraft systems (UAS), unmanned aerial vehicles (UAVs) and remotely piloted aircraft systems (RPAS) of all kinds and sizes, including those used for intelligence, surveillance and reconnaissance (ISR), combat (unmanned combat air vehicles, or UCAVs), law enforcement, research and other applications. Of particular focus is the FAA's planned integration of UAS into the U.S. national airspace system.

LABACE 2025

In this article

Phenom 100/100E/100EV

Phenom 300/300E

Legacy 450/500 and Praetor 500/600

Embraer Executive Aircraft

Embraer Commercial

Embraer Defense

More In Finance, Taxes, Insurance