Latest news with #E175
Business Insider
16-07-2025
- Business
- Business Insider
The Brazilian rival to Boeing and Airbus warned that Trump's planned 50% tariffs will hit it as hard as COVID-19
The CEO of Brazilian planemaker Embraer has warned that tariffs could be as damaging as the pandemic. Donald Trump has threatened a 50% levy on Brazilian exports from August 1, unhappy with criminal charges against former president Jair Bolsonaro, who is accused of trying to stage a coup. It would be a huge obstacle for the world's third-biggest planemaker. Around three-quarters of Embraer's business jets and nearly half of its regional airliners are delivered to US clients. "Given the relevance of this market, we estimate that if this [Trump's tariff plan] moves on at this magnitude, we will have an impact similar to that of COVID-19 in terms of the decline in the company's revenue," CEO Francisco Gomes Neto said, per Reuters. The firm's share price has fallen 8.5% in the past five days, but is still up more than 25% since the start of the year. Reuters reported that Gomes Neto also said that shipping Embraer's E175 jets, which play a major role in regional aviation, would become "unfeasible" with tariffs. He also reportedly emphasized that the tariffs would be damaging to the US as well, given that it supplies parts like engines and avionics. "It's a lose-lose situation," said the CEO. Tariffs have already caused problems for aviation's two dominant players: Boeing and Airbus. The American planemaker had to return some 737 Max jets from China when Chinese airlines declined to accept them after tariffs soared above 100% between the two countries. However, the two sides did reach a truce, and Boeing has resumed deliveries to China. Meanwhile, US airlines have been trying to find ways around Trump's 10% levy against the European Union. Ed Bastian, the CEO of Delta Air Lines, said on an April earnings call that the carrier would not pay tariffs and would instead defer aircraft deliveries. Instead, a Delta Airbus A350 left the planemaker's headquarters in Toulouse, France, and flew to Japan. So long as the jet is used exclusively for international flights, it may mean it never counts as being imported to the US. Most top players in the aviation industry oppose the threat of tariffs, as the industry relies on complex global supply chains. Some relief was found at last month's Paris Air Show, when Transportation Secretary Sean Duffy said he backed a return to a 1979 agreement for no tariffs in aviation. While the UK won tariff exemptions for aircraft parts and Rolls-Royce engines later in June, it is unclear whether similar exemptions will be made available for everyone.
Yahoo
16-07-2025
- Business
- Yahoo
The Brazilian rival to Boeing and Airbus warned that Trump's planned 50% tariffs will hit it as hard as COVID-19
Embraer's CEO warned tariffs could harm the company as much as the pandemic did. Trump has proposed a 50% levy on Brazilian exports. Nearly half the company's regional airliners are exported to the US. The CEO of Brazilian planemaker Embraer has warned that tariffs could be as damaging as the pandemic. Donald Trump has threatened a 50% levy on Brazilian exports from August 1, unhappy with criminal charges against former president Jair Bolsonaro, who is accused of trying to stage a coup. It would be a huge obstacle for the world's third-biggest planemaker. Around three-quarters of Embraer's business jets and nearly half of its regional airliners are delivered to US clients. "Given the relevance of this market, we estimate that if this [Trump's tariff plan] moves on at this magnitude, we will have an impact similar to that of COVID-19 in terms of the decline in the company's revenue," CEO Francisco Gomes Neto said, per Reuters. The firm's share price has fallen 8.5% in the past five days, but is still up more than 25% since the start of the year. Reuters reported that Gomes Neto also said that shipping Embraer's E175 jets, which play a major role in regional aviation, would become "unfeasible" with tariffs. He also reportedly emphasized that the tariffs would be damaging to the US as well, given that it supplies parts like engines and avionics. "It's a lose-lose situation," said the CEO. Tariffs have already caused problems for aviation's two dominant players: Boeing and Airbus. The American planemaker had to return some 737 Max jets from China when Chinese airlines declined to accept them after tariffs soared above 100% between the two countries. However, the two sides did reach a truce, and Boeing has resumed deliveries to China. Meanwhile, US airlines have been trying to find ways around Trump's 10% levy against the European Union. Ed Bastian, the CEO of Delta Air Lines, said on an April earnings call that the carrier would not pay tariffs and would instead defer aircraft deliveries. Instead, a Delta Airbus A350 left the planemaker's headquarters in Toulouse, France, and flew to Japan. So long as the jet is used exclusively for international flights, it may mean it never counts as being imported to the US. Most top players in the aviation industry oppose the threat of tariffs, as the industry relies on complex global supply chains. Some relief was found at last month's Paris Air Show, when Transportation Secretary Sean Duffy said he backed a return to a 1979 agreement for no tariffs in aviation. While the UK won tariff exemptions for aircraft parts and Rolls-Royce engines later in June, it is unclear whether similar exemptions will be made available for everyone. Read the original article on Business Insider
The Sun
16-07-2025
- Business
- The Sun
US tariffs may hit Embraer like pandemic, CEO warns
SAO PAULO: The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the Covid-19 pandemic did, its CEO warned on Tuesday, flagging risks to U.S. partners. Francisco Gomes Neto told reporters the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer's U.S. suppliers. Sao Paulo-listed shares in Embraer, which had risen 3% earlier in the day, seesawed during his remarks, lost the gains before ticking back up 0.6%. They have fallen around 10% since Trump announced the tariffs, but are still up 33% so far this year. The U.S. is the main market for Embraer, the world's third-largest planemaker after Airbus and Boeing , with U.S. clients buying 45% of the firm's commercial airliners and 70% of its executive jets. Analysts had warned that the Brazilian planemaker would be one of the most affected by the tariffs. 'Given the relevance of this market, we estimate that if this (tariff plan) moves on at this magnitude, we will have an impact similar to that of Covid-19 in terms of the decline in the company's revenue,' Gomes Neto said. In 2020, when the pandemic ground air travel to a halt, Embraer's revenue plunged around 30% from the previous year. Gomes Neto emphasized that the tariffs would also hurt U.S. suppliers of components such as engines and avionics. 'It's a lose-lose situation,' he said. Aircraft are among the top U.S. imports from Brazil, along with oil, steel, coffee and orange juice. Embraer forecast the levies would generate an additional cost of around $9 million per airplane exported to the U.S., with potential impacts totaling around 2 billion reais ($360 million) this year. Shipments of E175 narrowbodies, a workhorse of U.S. regional aviation, would become 'unfeasible' by the tariffs, Gomes Neto noted, adding that no order had been canceled so far. 'It's a very new situation, so everyone is trying to understand this process and working toward reaching a solution within the deadline,' the CEO said. In March, Embraer's E175 backlog included 90 firm orders from American Airlines, 40 from Republic, and 16 from SkyWest, which placed a fresh order in June for another 60 jets. ($1 = 5.56 reais) - Reuters
Business Times
15-07-2025
- Business
- Business Times
US tariffs could have pandemic-like impact on planemaker Embraer, CEO says
[SAO PAULO] The 50 per cent tariff that US President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the Covid-19 pandemic did, its CEO warned on Tuesday, flagging risks to US partners. Francisco Gomes Neto told reporters the tariffs would amount to a trade embargo on the regional jets it supplies to US airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer's US suppliers. Sao Paulo-listed shares in Embraer, which had risen 3 per cent earlier in the day, seesawed during his remarks, lost the gains before ticking back up 0.6 per cent. They have fallen around 10 per cent since Trump announced the tariffs, but are still up 33 per cent so far this year. The US is the main market for Embraer, the world's third-largest planemaker after Airbus and Boeing, with US clients buying 45 per cent of the firm's commercial airliners and 70 per cent of its executive jets. Analysts had warned that the Brazilian planemaker would be one of the most affected by the tariffs. 'Given the relevance of this market, we estimate that if this (tariff plan) moves on at this magnitude, we will have an impact similar to that of Covid-19 in terms of the decline in the company's revenue,' Gomes Neto said. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up In 2020, when the pandemic ground air travel to a halt, Embraer's revenue plunged around 30 per cent from the previous year. Gomes Neto emphasised that the tariffs would also hurt US suppliers of components such as engines and avionics. 'It's a lose-lose situation,' he said. Aircraft are among the top US imports from Brazil, along with oil, steel,coffee and orange juice. Embraer forecast the levies would generate an additional cost of around US$9 million per airplane exported to the U.S., with potential impacts totaling around 2 billion reais (S$463 million) this year. Shipments of E175 narrowbodies, a workhorse of US regional aviation, would become 'unfeasible' by the tariffs, Gomes Neto noted, adding that no order had been canceled so far. 'It's a very new situation, so everyone is trying to understand this process and working toward reaching a solution within the deadline,' the CEO said. In March, Embraer's E175 backlog included 90 firm orders from American Airlines, 40 from Republic, and 16 from SkyWest, which placed a fresh order in June for another 60 jets. REUTERS
Time of India
11-07-2025
- Business
- Time of India
US private jet buyer backs record Embraer deal as tariff turmoil hits Brazil planemaker, ET Infra
Advt Tariff impact Advt Private jet operator Flexjet, a key US customer of Embraer, suggested on Thursday it would stand by a record deal with the Brazilian planemaker despite turmoil from fresh trade tensions between the US and the South American President Donald Trump said on Wednesday he would impose a 50 per cent tariff on all imports from Brazil, starting August 1. Sao Paulo-traded shares of Embraer initially tumbled as much as 8 per cent on Trump's comments, before paring losses to close 3.7 per cent lower. But they remain up more than 30 per cent year-to-date on demand for the world's third-largest aircraft manufacturer's executive planes and regional higher tariffs create a fresh challenge for Embraer as airlines in the US, the world's largest market for both regional and private aviation, see a slowdown in domestic travel demand and about a February deal with Embraer to buy up to 212 private jets valued at up to $7 billion based on list prices, Cleveland, Ohio-based Flexjet said its clients, which buy a part-share in the aircraft, tend to "proceed" with such decisions."Based on my 40 years in the industry, this group of purchasers tends to proceed with their decisions regardless, given their priorities and past purchasing behavior," Flexjet Chairman Kenn Ricci said in a statement."In the short term, aircraft already under contract with foreign manufacturers are covered by existing agreements. If tariffs on foreign-made aircraft do indeed increase, manufacturers will likely bear some of the initial impact for these committed orders," he said, but added that over time, "those added costs will be passed on to the buyer."Flexjet's deliveries are expected to start in said in a statement it was evaluating the potential impacts of the tariffs, and would provide further comments during its second-quarter earnings call on August imports to the US are currently subject to a 10 per cent tariff, however Embraer can deduct US-made content on its planes, and some of its jets are assembled in BBA analysts said 60 per cent of Embraer's revenue is from North America, of which three-quarters could be exposed to tariffs. They estimated a potential impact of $150 million to Embraer's earnings before interest and taxes from August to to March 31 company filings, American Airlines has purchase agreements for 90 Embraer E175 jets , with deliveries in 2025 and beyond. American declined to comment on tariffs ahead of its quarterly earnings later this Airlines told the Seattle Times in June it had delayed delivery of two E175 jets due to tariffs. The carrier told Reuters on Thursday that both planes have been delivered after a short delay and will enter service has no more scheduled E175 deliveries this assembly of Embraer's business jets is finished in Florida, but key parts of planes such as the Phenom fuselage come from tariffs could have a greater impact on Embraer's smallest jet, the Phenom 100, which is produced in low volumes and has slimmer margins, one industry source said."The lower end of the business jet family is more price sensitive," said US business aviation analyst Brian are among the top US imports from Brazil, along with oil, steel products, coffee and orange juice."Although we see Trump's announcement primarily as a bargaining leverage, we expect investors' concern to remain high given the significant potential impact that a 50 per cent import tariff on Brazilian goods would imply for Embraer," XP analysts said.
