US Eliminates 10% Tariff on Brazilian Aircraft Exports After Court Ruling
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The US has eliminated a 10% tariff on Brazilian aircraft, a move that levels the playing field for manufacturer Embraer against its global competitors.
Key Takeaways
- •Removes a 10% US tariff on all Brazilian aircraft imports, benefiting Embraer.
- •Levels the competitive field for Embraer against tariff-free rivals Bombardier and Dassault.
- •Follows a Feb. 20, 2026, US Supreme Court ruling invalidating prior tariffs.
- •Keeps Section 232 tariffs on 29% of other Brazilian exports like steel and aluminum.
The United States government has eliminated a 10% tariff on Brazilian aircraft, a significant trade policy shift following a U.S. Supreme Court decision. The move, welcomed by the Brazilian government, directly benefits planemaker Embraer by removing a key competitive disadvantage in the critical North American market.
Previously, Embraer's aircraft faced a duty that rivals such as Canada's Bombardier and France's Dassault Aviation did not, creating an uneven playing field. The tariff removal now allows Embraer to compete on equal terms for sales of its commercial, executive, and defense aircraft. According to data from The Observatory of Economic Complexity (OEC), aircraft were one of Brazil's top three exports to the United States in 2024, highlighting the sector's economic importance.
Regulatory Landscape Shift
The policy change is a direct result of the U.S. Supreme Court's ruling on February 20, 2026, in Learning Resources, Inc. v. Trump. The court determined that the International Emergency Economic Powers Act (IEEPA) did not grant the president the authority to impose the broad tariffs that had been in effect since 2025. Following the ruling, the administration established new, temporary global tariffs under the Trade Act of 1974, but civil aircraft were specifically exempted from this measure.
However, not all trade barriers have been removed. Tariffs imposed under Section 232 of the Trade Expansion Act of 1962, which are justified on national security grounds, were not affected by the court's decision. According to Brazil's Ministério do Desenvolvimento, Indústria, Comércio e Serviços (MDIC), these duties still apply to 29% of Brazilian exports to the U.S., primarily affecting sectors such as steel and aluminum. These Section 232 tariffs remain a point of contention in the bilateral trade relationship.
Economic and Industry Impact
The MDIC provided further details on the scope of the tariff adjustments. The ministry estimates that 46% of all Brazilian exports to the U.S. in 2025 will no longer face any additional tariffs. Before the changes, the ministry stated that around 22% of its exports faced punitive tariffs of 40% or 50%. Now, approximately 25% of the country's exports, valued at roughly US$9.3 billion, are subject to a 10% global tariff, placing them on equal footing with goods from other nations. Other sectors, including agriculture, will also see tariffs reduced.
This development is a significant boost for Embraer, enhancing its competitive positioning in a market crucial for business jet sales. Brazil's Vice President Geraldo Alckmin noted that the Supreme Court's decision restores competitiveness for Brazilian industries in the U.S. market.
Broader US-Brazil Trade Dynamics
The United States is Brazil's second-largest trading partner after China, making the trade relationship highly significant for both economies. The recent period of tariff volatility highlights persistent friction between the two largest economies in the Americas.
There is a notable discrepancy in trade balance reporting between the two countries. The Brazilian MDIC stated that Brazil posted a trade deficit with the U.S. totaling US$7.5 billion in 2025. In contrast, official data from the U.S. Census Bureau and the U.S. Bureau of Economic Analysis for the same period shows a US$14.4 billion U.S. goods and services trade surplus with Brazil. This difference in accounting underscores the complexities of the bilateral economic relationship.
Why This Matters
This tariff removal provides immediate relief to a key player in the global aerospace supply chain and signals a potential stabilization in US-Brazil trade relations after a period of volatility. For the aerospace manufacturing sector, the decision underscores how judicial and regulatory actions can abruptly alter market access and competitive dynamics. It reinforces the importance of level trade policies for a highly globalized industry, directly impacting pricing, sales strategies, and supply chain decisions.
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Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
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