Embraer Aircraft Spared From 50% Tariff Announced by Donald Trump
The measure, effective August 1st, contains an exception for "civil aircraft, their parts, and components," shielding Embraer's production.
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The administration of President Donald Trump officially announced on July 30th the imposition of a tariff package on products imported from Brazil, raising the total rate to 50%. However, commercial and executive aircraft manufactured by Embraer were explicitly excluded from the measure, maintaining the status quo for the Brazilian aircraft manufacturer in its most important market.
The decree, which will apply an additional 40% tariff starting August 1st, follows a precedent similar to the treatment given to Airbus in past trade disputes with Europe. The regulation details a list of exceptions that includes raw materials and, crucially for the aerospace industry, "civil aircraft, their parts, and components."
This exemption is the result of intense negotiation efforts by Embraer directly with the U.S. government, according to industry sources. The outcome directly protects the Embraer E175-E1, the absolute leader in the United States regional aviation market, operated by major regional carriers for legacy airlines. Likewise, the decision secures the future of potential sales for the E-Jets E2 family and the Praetor 500 and Praetor 600 executive jet lines.
Why Were Embraer's Aircraft Spared?
The exemption of Embraer aircraft from the new United States tariff is due to several strategic factors. First, Embraer's deep integration into the U.S. market, where the E175 is vital for regional connectivity. Second, the company's industrial presence in Florida, where it assembles its Phenom and Praetor jets, creates local jobs. Finally, there is an international precedent of not including large civil aircraft in trade wars to avoid harming the airlines themselves and the complex global supply chain.
Although the Phenom 100 and Phenom 300 executive jets are assembled at Embraer's plant in Melbourne, Florida, a portion of their components originates from Brazil. Without this exemption, production costs on U.S. soil could have increased, affecting their competitiveness in a segment where both models are sales leaders.
As per our media partner Aeroin, the decree's text does not exempt military components. Theoretically, this could impact the A-29 Super Tucano light attack aircraft, also assembled in Florida in partnership with Sierra Nevada Corporation, and the multi-mission transport aircraft C-390 Millennium.
However, sales of defense material are rarely affected by conventional trade tariffs. These transactions are conducted under government-to-government (Gov-to-Gov) agreements, such as the United States' Foreign Military Sales (FMS) program. For this reason, both existing and future contracts for the A-29 and any potential interest from the Pentagon in the C-390 would not be subject to this new tax burden.
In practice, the White House's decision, while creating significant trade tension with Brazil, shields Embraer and acknowledges its systemic role in the American aviation industry.
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