Brazilian Aircraft Soar as U.S. Slashes Tariffs

The U.S. has cut tariffs on Brazilian aircraft, enabling them to enter duty-free. This move benefits Brazil's aerospace industry, especially Embraer, by leveling the playing field with competitors. The reduced tariffs also impact other sectors, improving the competitive positioning of Brazilian exports in the U.S. market.

The Brazilian government has warmly received the U.S. decision to eliminate tariffs on Brazilian aircraft imports, a significant shift from the previous 10% duty. This policy alteration is set to benefit Brazil's aerospace industry, led by Embraer, enhancing its competitive stance against rivals like Bombardier and Dassault Aviation.

The Ministry of Development, Industry, and Foreign Trade revealed that aircraft were the nation's third-largest export to the U.S. in 2024 and 2025, emphasizing the sector's high value addition and technological prowess. With the recent tariff policy adjustments, Brazil estimates that about 25% of its exports to the U.S., valued at $9.3 billion in 2025, now face a 10% global tariff, aligning Brazil's exports with those from other nations.

Despite these advances, some Brazilian exports continue to be affected by U.S. duties under Section 232, including goods in sectors like steel, aluminum, and furniture. Yet, the U.S. remains Brazil's second-largest trading partner after China, despite a longstanding trade deficit with the latter estimated at $7.5 billion in 2025.

(With inputs from agencies.)