<2> Trump Tariff Pivot Could Benefit Brazil’s Embraer, US Airlines and Aerospace Industry
<3> A Shift in Trade Policy
The recent announcement by the Biden administration to reassess the tariffs imposed on Brazilian aircraft manufacturer Embraer could have far-reaching implications for the US aerospace industry, US airlines, and Brazil’s Embraer. The tariffs, which were imposed by the Trump administration in 2020, have been a major point of contention between the two countries.
<4> A Brief History of the Tariffs
In 2020, the Trump administration imposed tariffs on Brazilian aircraft imported into the US, citing national security concerns. The tariffs were imposed under Section 232 of the Trade Expansion Act of 1962, which allows the president to impose tariffs on imports that are deemed a threat to national security. The tariffs were 7.5% on small aircraft and 15% on large aircraft.
<5> The Impact on Embraer
The tariffs have had a significant impact on Embraer’s business in the US. The company has seen a decline in sales and revenue due to the increased cost of importing aircraft into the US. The tariffs have also made it more difficult for Embraer to compete with US-based aircraft manufacturers such