Brazil hails zero US tariff on aircraft exports

Core Viewpoint - Brazil's government has welcomed the U.S. decision to eliminate tariffs on Brazilian aircraft exports, reducing the previous 10% tariff, which is expected to enhance the competitiveness of Brazil's aerospace sector, particularly benefiting Embraer [1][2]. Group 1: Impact on Aerospace Sector - The removal of tariffs allows Brazilian aircraft to compete on equal footing with rivals like Bombardier and Dassault Aviation, which already enjoyed tariff-free access to the U.S. market [2]. - Aircraft exports were Brazil's third-largest export to the U.S. in 2024 and 2025, with the sector noted for its high value added and technological intensity [3]. Group 2: Overall Export Landscape - Approximately 25% of Brazil's exports to the U.S., valued at around $9.3 billion in 2025, are now subject to a 10% global tariff, aligning them with products from other countries [3]. - Before the tariff changes, about 22% of Brazilian exports faced additional tariffs of 40% to 50%, which have now been reduced, allowing for better competition [4]. - The government estimates that 46% of Brazilian exports to the U.S. in 2025 will no longer face additional tariffs, while 29% will still be subject to duties under Section 232, affecting sectors like steel and aluminum [5]. Group 3: Trade Relations - The U.S. is Brazil's second-largest trading partner after China, with Brazil experiencing a trade deficit of $7.5 billion with the U.S. in 2025 [6].