Brazil Downplays Impact of US Tariffs on 2025 Growth; Embraer Net Sales Breakdown

Brazil downplays the impact of US tariffs on its 2025 growth, with Embraer's commercial aircraft sales contributing 46.5% to the country's net sales. Embraer also provides defense systems, business aircraft, and aeronautic services, with a geographical distribution of 12.5% in Brazil, 57.2% in North America, and 14.6% in Asia/Pacific.

Brazil has downplayed the impact of the U.S. tariffs on its 2025 growth, with Embraer's commercial aircraft sales contributing 46.5% to the country's net sales. Embraer, a key player in the global aviation industry, provides defense systems, business aircraft, and aeronautic services, with a significant portion of its revenue coming from North America.

The U.S. imposed a 50% tariff on Brazilian imports, affecting companies like Embraer, which has a substantial market in the U.S. for its executive planes and regional jetliners. According to Reuters, analysts warn that Embraer, the world's third-largest aircraft manufacturer, would be one of the firms most affected by the tariffs [1]. Itau BBA analysts estimated a potential impact of $150 million to Embraer's earnings before interest and taxes (EBIT) from August to December [1].

Embraer's E1 jets are the backbone of U.S. regional aviation, with SkyWest having recently placed a firm order for 60 E175 aircraft. However, the tariffs could impact demand for E1 jetliners amid an inflationary environment for the aircraft [1]. Despite the potential negative impact, Embraer's shares are still up more than 30% on a year-to-date basis, following a 150% surge last year [1].

Royal Air Maroc (RAM), Morocco’s flag carrier, is also considering Embraer's E2 aircraft for its fleet renewal plan. The Moroccan airline is reportedly considering Embraer’s second-generation E2 aircraft family, known for their operational efficiency and lower operating costs [2]. This move aligns with RAM's broader strategy to diversify its fleet and adapt to different routes and passenger demands.

The Brazilian government has expressed optimism about the country's economic growth despite the U.S. tariffs. The government believes that the tariffs will not significantly impact the overall economic performance of Brazil in 2025. The country's diverse economic base, including sectors such as agriculture, mining, and services, is expected to offset the negative impact of the tariffs.

In summary, while the U.S. tariffs on Brazilian imports may have a significant impact on certain sectors, the Brazilian government and companies like Embraer are taking steps to mitigate the potential negative effects. The country's economic growth is expected to remain strong in 2025, with Embraer's commercial aircraft sales playing a crucial role in the country's net sales.

References:
[1] https://money.usnews.com/investing/news/articles/2025-07-10/shares-of-brazils-embraer-slide-as-analysts-warn-of-impact-from-trump-tariffs
[2] https://aviacionaldia.com/en/2025/07/royal-air-maroc-considers-adding-embraer-e2-aircraft-to-ambitious-fleet-renewal-plan.html