Trump Exempts Aircraft from 50% Tariff Increase: Relief for Brazilian Business Aviation

Amid diplomatic tensions, the aeronautics sector (including executive jets) was spared from the new US import tariff, preserving billion-dollar businesses and avoiding severe impacts on Embraer.

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On July 30, 2025, U.S. President Donald Trump signed an executive order imposing a 50% tariff on Brazilian products exported to the U.S. The measure, which takes effect in August, represents an escalation in trade tensions between the two countries. However, in a strategic decision, civil aircraft (commercial and business) were excluded from the new tariff, maintaining the previous 10% tariff that had been in effect since April.

This exception represents significant relief for the Brazilian aviation sector, especially for Embraer, which exports approximately 70% of its executive jets to the North American market. The measure also benefits private aviation operators, fractional ownership companies, and international brokers that depend on the fluidity of trade between Brazil and the US.

What Was Exempted?

According to the presidential decree, the following are excluded from the new 50% tariff:

• Civil aircraft (except military)

• Aeronautical engines, parts and subassemblies

• Flight simulators and their components

• New and used executive jets

• Energy and agricultural products such as orange juice and minerals

The 10% tariff remains in effect, but is considered manageable by companies in the sector. If the new tariff were implemented, the estimated impact for Embraer would be R$50 million per aircraft, with a potential loss of R$20 billion by 2030.

Political and Economic Context

Trump's decision was motivated by allegations of "threats to national security and freedom of expression" by the Brazilian government, particularly in relation to the legal proceedings against former President Jair Bolsonaro. The White House cited Minister Alexandre de Moraes as responsible for "persecuting political opponents and imposing censorship on American companies."

Despite its political overtones, the aircraft exemption reveals a clear economic priority: preserving production chains and avoiding disruptions in strategic sectors. Embraer, for example, maintains assembly lines in the US, employs thousands of American workers, and purchases billions of dollars worth of American components—arguments that were decisive for the exemption.

Market Reaction

The news of the exemption provoked an immediate reaction:

• Embraer shares rose more than 10% on the B3 on the same day

• The company publicly celebrated the decision, highlighting the “positive impact and strategic importance” of its US operations.

• Analysts classified Embraer as the “main beneficiary” of the measure, with expectations of new all-time highs in the shares.

Impact on Business Aviation

For the executive jet segment, the exemption guarantees:

• Continued deliveries to American customers such as Flexjet, NetJets and private operators

• Price stability and international leasing contracts

• Preserving Brazilian competitiveness in the global business aviation market

Furthermore, the new tax legislation signed into law by Trump in July reinstates the 100% bonus depreciation for new and used aircraft in commercial operations, allowing companies to deduct the full acquisition cost in the year of entry into service. This makes business jets even more attractive to American buyers.

🔗 Official Sources and References

• G1 – Commercial and executive aircraft are excluded from Trump's tariff hike

• Exame – Aviation is among the exempt sectors