US regional carrier SkyWest Airlines has expressed unwillingness to pay steep tariffs on Brazilian-made Embraer jets, suggesting that it would defer or possibly cancel aircraft deliveries if the Trump administration’s proposed tariffs on Brazil go into effect.
Earlier this month, US President Donald Trump threatened to impose duties as high as 50% for products imported from Brazil, a significant jump from the 10% “baseline” tariff that the USA has imposed on goods imported from most of the world’s countries.
Unless an exemption is carved out for aerospace products, the USA’s stiff tariff regime would almost certainly drive up the cost of Embraer-manufactured aircraft.
SkyWest previously declined to comment on the developing situation, noting on 11 July that “much can change and it is too early to say” how its business would be affected by Trump’s tariffs.
But chief executive Chip Childs addressed the looming question during SkyWest’s second-quarter earnings call on 24 July.
“If implemented, tariffs on Brazil are not expected to change our 2025 production forecast,” Childs says. “However, we are not willing to pay a 50% tariff on new aircraft deliveries.”
“While all regional aircraft are produced outside of the United States, SkyWest is best-positioned in our segment of the industry to manage through these macro-economic challenges,” he adds.
Childs touts SkyWest’s strong relationships with its major airline partners as well as Embraer, “all of whom are very interested in securing sustainable solutions”.
SkyWest is one of Embraer’s biggest customers, with a massive fleet of E175s and dozens more due for delivery.
Last month, SkyWest disclosed plans to purchase 16 new E175s that it will fly under a multi-year contract with Delta Air Lines. Deliveries are expected to begin in 2027.
The carrier anticipates operating 300 of the twinjets by 2028.
SkyWest also holds firm delivery positions for 44 more E175s between 2028 and 2032.
Childs says the ability to “defer or cancel these aircraft” provides the airline with “unparalleled fleet flexibility”, suggesting the carrier may pivot on its fleet plans if confronted by onerous duties on Brazilian products.
Embraer will likely address the tariff issue during its quarterly earnings call on 5 August.
SkyWest reports a second-quarter profit of $120 million, with Childs describing demand for air service to small and mid-sized communities throughout the USA “as strong as we’ve ever seen it”.
One potential source of optimism is the trade deal recently agreed to between Washington and the European Union.
Aircraft and aviation components will be exempt from import duties under that agreement, which was announced by European Commission President Ursula Von der Leyen and US President Donald Trump in Scotland on 27 July.
