Brazil Praises U.S. Decision to Drop Tariffs on Aircraft Exports

Post by : Saif

Brazil’s government has welcomed a major decision by the United States to remove tariffs on Brazilian aircraft entering the American market. The tariff was cut from 10 percent to zero, which means Brazil’s planes can now compete without extra costs when sold in the United States. This move is seen as a big gain for Brazil’s aerospace industry and for the country’s broader trade ties with its largest trading partner after China.

The decision by Washington follows changes to U.S. trade policy after legal challenges and court rulings. The new policy means that aircraft from Brazil will enter the United States without duty, giving them the same tariff treatment enjoyed by rivals from countries such as Canada and France. This is especially important for Brazilian planemaker Embraer, which had faced a disadvantage compared with competitors whose aircraft were already tariff-free.

Brazil’s Ministry of Development, Industry and Foreign Trade said aircraft are one of the country’s most important exports to the United States. In both 2024 and 2025, they ranked as the third-largest category of Brazilian goods sent to the U.S. market. The ministry noted that this sector brings advanced technology and high-value products, supporting skilled jobs and industrial growth in Brazil.

Under the latest trade adjustments, Brazil estimates that about 25 percent of its exports to the United States, worth approximately $9.3 billion in 2025, now face a 10 percent global tariff. This puts Brazilian goods on a more equal footing with products from other countries that already benefit from low duties. Before the changes, around 22 percent of Brazilian exports faced much higher tariffs of 40 percent or 50 percent, creating obstacles for exporters.

The reduction of tariffs is not limited to aircraft. Brazil’s agricultural sector is also seeing relief. Products such as fish, honey, tobacco and soluble coffee will see duties fall from high levels to a simpler 10 percent rate. This change should help these goods compete more fairly with similar products from other nations.

Brazil has seen a long history of trade disagreements and tariff battles with the United States. Much of this stems from decisions by the U.S. government under previous administrations to impose steep duties on a range of Brazilian goods. Some of those tariffs were ruled invalid by the U.S. Supreme Court, forcing changes to trade policy. The latest decision to allow zero tariffs on aircraft is part of this broader effort to reset trade relations.

Despite the positive changes, Brazil still faces challenges in trade with the United States. A part of its exports remains subject to tariffs under specific rules, especially goods like steel, aluminum, wood, copper and furniture. These duties are applied under a different U.S. law that targets products for national security reasons.

The United States continues to be one of Brazil’s most important partners for trade. However, Brazil has run a trade deficit with the United States in recent years, meaning it imports more from the U.S. than it exports. In 2025, that deficit reached about $7.5 billion. Even with this imbalance, the export of aircraft and other goods makes the relationship valuable for both economies.

For Brazil’s aerospace industry, the removal of tariffs is a welcome development that may improve competitiveness and open new opportunities in the U.S. market. It could help Brazilian manufacturers win more contracts and expand sales, especially at a time when global competition in aviation is strong.

Economists say that fair and stable trade rules are crucial for long-term growth. With lower tariffs, exporters can plan with more certainty, invest in new products, and strengthen global ties. This step also shows how international trade policies change over time as countries respond to legal decisions, political pressures, and shifting economic priorities.

In simple terms, the U.S. decision to drop tariffs on Brazilian aircraft exports is important news. It brings hope for stronger business relationships, more fair competition, and better chances for Brazilian companies to sell their products in one of the world’s biggest markets. The change will be watched closely by industry experts, business owners, and workers in Brazil’s aerospace sector in the months ahead.

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