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Montevideo, August 2nd 2025 - 02:20 UTC

 

 

Embraer not included in Trump's 50% tariffs

Friday, August 1st 2025 - 10:40 UTC
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Embraer's shares went up after the confirmation Embraer's shares went up after the confirmation

Brazil’s aircraft manufacturer Embraer will remain outside the scope of US President Donald Trump's 50% import tariffs after aircraft, engines, aviation parts, and components appear on the list of around 700 exempt products. Last week, the company reported that the tariff would render sales unfeasible.

 “We continue to believe in and firmly defend a return to zero tariffs for the global aerospace industry,” read a statement from Embraer, the third largest aircraft manufacturer in the world. “Most importantly, we support the ongoing dialogue between the Brazilian and US governments and remain confident of a positive outcome for both countries,” it added.

In a statement published Wednesday (Jul. 30), the US Chamber of Commerce for Brazil, AmCham, calculates that the 694 products excluded from the US government’s executive order represent $18.4 billion in Brazilian exports in the last period surveyed, 2024.

The aircraft sector alone sold US$2 billion to the US last year, half of which was in light aircraft, Embraer’s main product. Since April 2 this year, the company’s products for the US market have been taxed at 10%. With aircraft listed as exceptions, Embraer’s shares rose 10.93%.

Amcham Brasil also estimated that the list of exceptions to US import tariffs on Brazilian products covered 43.4% of the US$42.3 billion traded between the two countries. As a result, approximately US$18.4 billion in Brazilian exports are exempt from the tariffs.

The list of exceptions includes a total of 694 products, such as oil, fuels, orange juice and pulp, minerals, fertilizers, engines, parts, components, and civil aircraft. However, key Brazilian exports to the US, such as coffee and beef, remain subject to the new taxation.

“Although these exceptions partially mitigate the effects of the announced 50 percent tariff, Amcham emphasizes that significant impacts remain on strategic sectors of the Brazilian economy. Products excluded from the list are still subject to the tariff increase, which undermines the competitiveness of Brazilian companies and potentially affects global value chains,” the entity said in a statement.

Amcham Brazil stressed the importance of dialogue to preserve the historic diplomatic and commercial ties between the Western Hemisphere’s two largest economies. (Source: Agencia Brasil)

Categories: Politics, Brazil, United States.

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