Embraer E175

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The Brazilian rival to Boeing and Airbus warned that Trump's planned 50% tariffs will hit it as hard as COVID-19
Business Insiderยท 2025-07-16 11:25
Core Viewpoint - The CEO of Embraer has indicated that proposed tariffs by the U.S. could have a detrimental impact on the company, comparable to the effects of the COVID-19 pandemic [1][2]. Group 1: Impact of Tariffs - Approximately 75% of Embraer's business jets and nearly 50% of its regional airliners are delivered to U.S. clients, making the U.S. market crucial for the company [2]. - The CEO estimates that if the proposed 50% tariff is implemented, it could lead to a revenue decline similar to that experienced during the pandemic [2]. - Shipping Embraer's E175 jets would become "unfeasible" under the proposed tariffs, affecting regional aviation significantly [3]. Group 2: Broader Industry Implications - The CEO described the situation as a "lose-lose" for both Embraer and the U.S., as the U.S. also supplies essential parts like engines and avionics [4][3]. - The aviation industry has already faced challenges due to tariffs, impacting major players like Boeing and Airbus [5]. - The complex global supply chains in the aviation industry make it difficult for companies to absorb such tariffs without significant repercussions [11].