Embraer CEO Francisco Gomes Neto has warned that the Brazilian manufacturer could face order cancellations and delays if the Trump administration implements its punitive tariffs. This would significantly affect Embraer’s order book, which is at its highest, as well as customers who expect to receive new aircraft in the coming years.
US operators had already faced disruptions to aircraft deliveries when Donald Trump’s tariffs were first implemented. Earlier this year, Alaska Airlines had to delay the delivery of two aircraft as it did not want to face additional costs due to tariffs.
An Uncertain Time Ahead
In an interview with Bloomberg, Neto said that the manufacturer does not have any cancellation problems at the moment, but expects it might happen mid-term. Cancellations would shrink Embraer’s order book, forcing it to make fewer aircraft and purchase fewer materials from the US. According to Neto, tariffs imposed by the Trump administration could add $2 million per aircraft.
Embraer still faces a tariff impact of about $80 million in 2025, roughly equivalent to second-quarter net income. While Embraer was exempt from the 50% tariffs proposed by the Trump administration on all Brazilian imported goods, the manufacturer still faces a 10% tariff on its products. The company hopes it can return to a zero-tariff policy. Francisco Gomes Neto said:
“It would be bad for the US industry because if we make fewer aircraft, we buy fewer equipments from the US. That’s why the zero tariffs is important.”
Multiple Orders From The US
In July, the US imposed a 40% tariff on all Brazilian goods on top of a 10% tariff increase earlier in the year. The hike was in retaliation for the criminal prosecution of Brazil’s former president and Trump’s ally, Jair Bolsonaro. Brazil’s current leader, Luiz Inacio Lula da Silva, hopes the Trump administration can cut the punitive tariffs back to 10%. The two leaders met in Malaysia on October 27, with Lula expressing confidence that Brazil will reach a trade deal with the US.
Embraer will look on, as any hike in tariffs would raise the cost of its aircraft, affecting its customers. At the end of the third quarter, Embraer reported a total backlog of $31.3 billion, setting a new record for the company. The backlog was up 5% from the second quarter and up 38% from the same period last year. As of September 30, Commercial Aviation had a backlog of $15.2 billion, Executive Aviation with $7.3 billion, Services and Support with $4.9 billion, and Defense and Security with $3.9 billion.
Embraer has a firm order backlog of 490 aircraft, including 253 E195-E2s, 37 E190-E2s, and 200 E175s. The company’s commercial aviation backlog comprises several airlines and lessors from the US, including 
American Airlines with 86 E175s, SkyWest with 74, and Republic Airways with 32. Embraer recently won its first E2 order from a US carrier, with Avelo Airlines placing an order for 50 E195-E2s. Deliveries are expected to begin in the first half of 2027. The low-cost carrier also has options for 50 more jets.
Growing Operations In The US
Embraer has over 800 commercial aircraft in service in the US, with regional carriers SkyWest Airlines and Republic Airways being the largest operators. The Brazilian manufacturer has been present in the US for over four decades and will look to continue growing in the coming years.
Embraer recently commenced the construction of a new MRO center for commercial jets at Perot Field Alliance Airport (AFW) in Fort Worth, Texas. The facility is scheduled to be open in 2027 and will create up to 250 new skilled jobs in Texas. The $70 million investment will allow Embraer to increase MRO capacity by 53% to serve E-Jet operators in the US.
The company is also looking to invest in an assembly plant in the US for its KC-390 Millennium military transport aircraft in a bid to secure a next-generation refueler contract with the US Air Force. The company has already identified potential locations in the US to assemble the aircraft and source local components.
