How Embraer dodged a bullet

The Brazilian aircraft manufacturer has escaped the wrath of President Trump's tariffs, not without considerable support from US regional carriers for whom the company's jets are critical.health

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On August 5, Embraer told investors during its second-quarter earnings call that it was in what it described as "advanced conversations" with senior officials in Brasília and Washington to bring back the zero-tariff status that was the template for its civil-aircraft sales in the US for more than 45 years.

Embraer's President and CEO, Francisco Gomes Neto, said that the company currently supports 13,000 jobs in the U.S. and anticipates creating an additional 5,500 jobs by 2030 through planned investments. He also emphasised an $8 billion trade surplus favouring the U.S.. market. During the call, Chief Financial Officer Antonio Carlos Garcia mentioned that Embraer has fully incorporated the 10 per cent tariff into its forecasts for 2025, with approximately 20 per cent of the anticipated $65 million impact already accounted for.

Garcia further noted that logistical solutions such as free-trade zones and temporary imports have assisted in protecting customers from the tariff.

Embraer announced plans to invest an additional $500 million in its U.S. operations and to consider local assembly of its KC-390 transport aircraft if a contract with the U.S. Air Force is secured. Gomes Neto indicated that this initiative could create around 2,500 jobs for Americans.

Executives remarked that reinstating a zero-tariff environment would enhance the 2025 results and bolster Embraer's standing in the regional-jet market and beyond.