Brazil Promises to Protect Embraer After 50% Tariff Imposed by the U.S.: Losses Could Reach $9 Million Per Plane

Written by Bruno Teles

Published on 29/07/2025 at 15:36

Governo reage à tarifa de Trump: Embraer pode perder bilhões e cortar empregos se medida vingar

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Minister Says Brazil Will Take All Possible Measures to Protect Embraer from the New 50% Tariff Announced by the United States

The Brazilian government is in dialogue with Embraer to minimize the impacts of the 50% tariff that the United States intends to impose on aircraft manufactured in Brazil. The measure was announced by President Donald Trump and is set to take effect on August 1, which could cause severe losses to the manufacturer.

According to the Minister of Ports and Airports, Silvio Costa Filho, the federal Executive is willing to act decisively to preserve Embraer’s competitiveness. Among the possible solutions are financial incentives and trade diplomacy to try to reverse the U.S. decision.

Government Promises Full Support to Embraer

The confirmation that the government is in talks with Embraer was given on Tuesday (29) by Minister Silvio Costa Filho, during an event at Jacarepaguá Airport in Rio de Janeiro. He stated that the Brazilian aircraft manufacturer will have the necessary support in light of the tariff threat imposed by the United States.

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“Embraer knows that everything within our reach will be done”, the minister affirmed. According to him, one of the strategies under consideration is to increase the availability of export credit, a measure that would help offset the additional costs generated by the new rate.

50% Tariff Could Cause Domino Effect

The impact of the measure was compared by Embraer’s CEO, Francisco Gomes Neto, to the collapse faced during the Covid-19 pandemic. In an interview with the press, the executive warned of risks such as order cancellations, delivery delays, and even staff layoffs, with an estimated loss of US$ 9 million per aircraft sold to the U.S.

This amount reflects not only immediate losses but also reduction in the company’s investment and instability in the production chain. The United States is Embraer’s largest external market, especially for the regional jets segment, making the tariff a direct threat to the company’s financial performance.

Embraer Seeks Direct Negotiation with the U.S.

In an official statement, Embraer stated that it is “actively engaged with Brazilian and American authorities” in an attempt to reverse the decision. The company emphasized that it is betting on a diplomatic solution that would restore the zero tariff, which had been in effect until then for Brazilian aircraft.

The manufacturer also highlighted that the increase in tariff could affect clients and suppliers based in the United States, which could generate internal political pressure for the reversal of the measure. More concrete developments are expected after August 5, when the company will release its financial report for the second quarter.

Pressure Mounts in Diplomatic Backchannels

The U.S. initiative is part of a set of protectionist policies from the Trump administration, which is still exploring similar measures for other sectors. According to the U.S. Secretary of Commerce, new decisions regarding trade agreements are expected to be announced by Friday, increasing Brazil’s urgency to negotiate.

Meanwhile, the Brazilian government is working behind the scenes to prevent the tariff from being maintained. The Ministry of Foreign Affairs is also involved in the negotiations with the U.S. State Department, in search of a solution that preserves jobs and the competitiveness of the national aerospace industry.

Do you think Brazil should adopt retaliation measures if the U.S. maintains the tariff against Embraer?

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Brazil Promises to Protect Embraer After 50% Tariff Imposed by the U.S.: Losses Could Reach $9 Million Per Plane

Minister Says Brazil Will Take All Possible Measures to Protect Embraer from the New 50% Tariff Announced by the United States

Government Promises Full Support to Embraer

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

50% Tariff Could Cause Domino Effect

Embraer Seeks Direct Negotiation with the U.S.

Pressure Mounts in Diplomatic Backchannels

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Brazil Promises to Protect Embraer After 50% Tariff Imposed by the U.S.: Losses Could Reach $9 Million Per Plane

Minister Says Brazil Will Take All Possible Measures to Protect Embraer from the New 50% Tariff Announced by the United States

Government Promises Full Support to Embraer

Major Oil, Gas, and Energy Event Will Take Place in Brazil: Macaé Energy Will Gather Petrobras, Equinor, Prio, Among Other Suppliers and Energy Executives for Business, Networking, and Employment Opportunities

50% Tariff Could Cause Domino Effect

Embraer Seeks Direct Negotiation with the U.S.

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