Background on Embraer and its Relevance
Embraer, a prominent Brazilian aircraft manufacturer, reported net profits of $54.4 million in the third quarter of 2025, despite facing challenges from tariffs imposed by former U.S. President Donald Trump on Brazilian products.
As the third-largest aircraft manufacturer globally, Embraer competes with industry giants Airbus and Boeing. The company’s reputation and market position make its performance significant for both the aviation industry and Brazil’s economy.
Tariff Impact on Embraer
Embraer’s executive chairman, Francisco Gomes Neto, explained that the company’s components destined for the United States to assemble executive jets are subject to a 10% universal tariff imposed by Trump. This increased Embraer’s expenses and raised the cost of their products.
During the third quarter, Embraer paid $17 million in tariffs to the United States. However, the company still achieved record revenues of $2.004 billion for the period and holds its highest-ever order backlog of $31.3 billion.
Positive Outlook and Performance
Embraer’s vice president of finance, Antonio Carlos García, expressed confidence in meeting their 2025 targets. In the third quarter of 2024, Embraer reported profits of $221 million and delivered 62 aircraft, three more than the same period in 2024.
Embraer’s lobbying efforts, alongside other major Brazilian companies, reportedly facilitated dialogue between then-Brazilian President Luiz Inácio Lula de Silva and Trump regarding the tariffs.
Political Context of Tariffs
Trump imposed high tariffs on Brazil as part of what he deemed a “witch hunt” against former President Jair Bolsonaro, who was convicted in September for attempting a coup.
Gomes Neto mentioned that Embraer is optimistic about the ongoing process, recalling that in negotiations with the United Kingdom, European Union, or Japan, the U.S. agreed to remove all excessive duties on aircraft parts.
Key Questions and Answers
- What are Embraer’s profits in Q3 2025? Embraer reported net profits of $54.4 million in the third quarter of 2025.
- How did tariffs affect Embraer’s performance? Tariffs increased Embraer’s expenses and raised the cost of their products, but the company still achieved record revenues.
- What is Embraer’s position in the global aircraft market? Embraer is the third-largest aircraft manufacturer globally, competing with Airbus and Boeing.
- What was the impact of tariffs on Embraer’s delivery numbers? Despite tariff challenges, Embraer delivered 62 aircraft in Q3 2025, three more than the same period in 2024.
- How did Embraer navigate political tariff issues? Embraer’s lobbying efforts and dialogue with Trump helped mitigate the impact of tariffs on their business.
