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US Removes Tariffs on Brazilian Aircraft Restoring Duty-Free Trade

The US eliminates 10% tariffs on Brazilian aircraft, benefiting Embraer and US regional airlines with a temporary exemption under Section 122 of the Trade Act.

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This article summarizes reporting by Reuters and includes data from public trade records.

Brazil Welcomes Removal of U.S. Aircraft Tariffs, Restoring Duty-Free Status for Embraer

The Brazilian government has officially welcomed a decision by the United States to eliminate import tariffs on Brazilian aircraft, effectively restoring a “zero-tariff” trade relationship for the aerospace sector. According to reporting by Reuters, the move reduces the duty on Brazilian jets entering the U.S. from 10% to zero, a significant shift following months of volatile trade policy.

The decision comes in the wake of a pivotal U.S. Supreme Court ruling on February 20, 2026, which struck down previous broad tariff structures. In response, the U.S. administration pivoted to a new strategy under Section 122 of the Trade Act of 1974. While this new measure imposes temporary global tariffs on many goods, civil aircraft, engines, and parts were specifically listed as exempt, providing immediate relief to Brazilian planemaker Embraer and its U.S. customers.

This policy shift marks a return to the status quo that existed for over 45 years prior to April 2025, during which the U.S. and Brazil traded civil aviation products duty-free. The reinstatement of this status is expected to have widespread implications for the regional airline market in the United States.

Impact on Embraer and Global Competition

The removal of the 10% levy is a major victory for Embraer, Brazil’s leading exporter of high-value manufactured goods. For the past year, the tariff placed Embraer at a price disadvantage compared to its primary competitors, such as Canada’s Bombardier and France’s Dassault, whose business jets continued to enter the U.S. market duty-free.

According to trade data, aircraft represent Brazil’s third-largest export to the United States, valued at approximately $1.41 billion in the first half of 2025 alone. Brazilian Vice President and Minister of Development Geraldo Alckmin praised the decision, noting that it restores “competitive parity” for Brazilian industry.

Relief for U.S. Regional Carriers

The exemption is also a critical development for U.S. regional airlines. Carriers such as SkyWest, Republic Airways, and American Airlines rely heavily on Embraer’s E175 jets to operate their regional networks. Industry analysts have noted that these airlines faced the prospect of deferring deliveries or absorbing higher costs under the previous tariff regime.

By exempting civil aircraft from the new Section 122 measures, the U.S. administration has ensured a steady supply of regional jets required to replace aging fleets without imposing inflationary costs on domestic carriers.

Legal Context and Future Uncertainty

The legal landscape surrounding this decision remains complex. The exemption was triggered after the Supreme Court ruled in Trump v. CASA, Inc. that the executive branch lacked the authority to impose the previous tariff structures under the International Emergency Economic Powers Act (IEEPA). Consequently, the administration invoked Section 122 to maintain trade pressure while carving out exemptions for critical sectors like aerospace.

However, legal experts warn that this relief may be temporary. The tariffs implemented under Section 122 are legally limited to a duration of 150 days, set to expire in July 2026. Furthermore, the administration has indicated that an investigation into Brazil’s trade practices under Section 301 is ongoing, which could lead to targeted tariffs in the future.

“Now it seems we have a window at least where we can import these aircraft free from tariffs. The question is how long that window will last.”

Tobias Kleitman, President of TVPX, via industry reports

AirPro News Analysis

We view this exemption as a pragmatic concession by Washington rather than a purely diplomatic gesture toward Brazil. The U.S. regional aviation market is structurally dependent on the Embraer E175; there is currently no U.S.-manufactured alternative that meets the scope clause requirements of major pilot contracts. Penalizing Embraer imports would have disproportionately harmed U.S. airlines and the traveling public in smaller markets.

While the immediate threat has passed, the 150-day clock on Section 122 measures creates a “sunset horizon.” We advise stakeholders to accelerate deliveries where possible before July 2026, as the long-term trade framework between the U.S. and Brazil remains unsettled.

Frequently Asked Questions

What was the previous tariff rate?
Between April 2025 and February 2026, Brazilian aircraft imports were subject to a 10% tariff.

Why was the tariff removed?
A Supreme Court ruling invalidated the previous tariff authority. The administration subsequently issued new temporary measures that specifically exempted civil aircraft.

Does this affect private jets?
Yes. The exemption covers civil aircraft, which includes executive jets like Embraer’s Praetor and Phenom series.

Sources

Photo Credit: Embraer

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Aircraft Orders & Deliveries

Do228 NXT Secures First Order With NGO Launch Customer

General Atomics AeroTec Systems confirms first Do228 NXT sale to an NGO, with delivery scheduled for early 2027.

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General Atomics AeroTec Systems (GA-ATS) has secured the first confirmed order for its newly relaunched Do228 NXT program, announcing an undisclosed non-governmental organization (NGO) as the launch customer for the modernized turboprop.

The announcement, made in a press release on June 11, 2026, follows the aircraft’s official roll-out ceremony in Oberpfaffenhofen, Germany, on June 8, 2026. The sale validates the manufacturer’s decision to resume series production of the Dornier 228 platform, targeting operators requiring short takeoff and landing (STOL) capabilities in low-infrastructure environments. Delivery is scheduled for early 2027.

Humanitarian mission profile and aircraft capabilities

The launch customer plans to utilize the Do228 NXT for humanitarian and special mission operations. In the GA-ATS press release, an NGO representative stated the aircraft will strengthen operational flexibility across various humanitarian scenarios and assist communities when time is critical.

The Do228 NXT retains the core performance characteristics of the legacy Dornier 228 while integrating modernized systems. According to specifications published by Aviation Business News, the aircraft requires a takeoff distance of 445 meters and a landing distance of 362 meters at sea level. It offers a maximum range of up to 3,025 kilometers and a cruise speed of 444 kilometers per hour. The cabin can be configured to carry up to 19 passengers or approximately two tonnes of freighter payload.

Production restart and supply chain stabilization

The launch customer announcement follows a series of program milestones for GA-ATS. The Do228 NXT demonstrator completed its first flight on May 2, 2026. On June 8, 2026, the company hosted a roll-out ceremony attended by approximately 500 guests, where the aircraft was displayed in a blue triangle livery designed to highlight its aerodynamics and multi-role capabilities, as reported by Defence Industry Europe.

To support the production restart, GA-ATS has restructured its manufacturing approach. The company brought wing manufacturing in-house at its Oberpfaffenhofen facility to reduce reliance on third-party suppliers and mitigate component lead times. Florian Rohe, Managing Director at GA-ATS, confirmed to Aviation Business News that major hurdles regarding the supply-chain ramp-up have been addressed. Rohe also noted in a statement to Defense Mirror that the signed contracts and early 2027 delivery timeline confirm the decision to resume production was correct.

The aircraft will make its public debut at the ILA Berlin Air Show from June 10 to June 14, 2026, followed by an appearance at the Farnborough International Airshow in July 2026.

AirPro News analysis

The sale of the first Do228 NXT demonstrates sustained market demand for rugged, unpressurized utility turboprops capable of operating from austere airstrips. By classifying the NXT upgrades as minor changes, GA-ATS avoided the extensive costs and delays associated with a new type certification. We view this regulatory strategy, combined with the decision to vertically integrate wing production, as a pragmatic approach to reviving a legacy airframe. The choice of an NGO as the launch customer aligns perfectly with the aircraft’s historical strength in the special mission and humanitarian sectors, where payload flexibility and short-field performance outweigh the need for pressurized cabin comfort or high-speed cruise.

Sources: General Atomics AeroTec Systems

Photo Credit: General Atomics AeroTec Systems

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Aircraft Orders & Deliveries

ETF Airways Adds Fourth Boeing 737-800 to Its Fleet

Croatian ACMI operator ETF Airways inducts Boeing 737-800 9A-ICF, growing its fleet to five aircraft.

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This is original reporting and analysis by AirPro News.

Croatian charter and ACMI operator ETF Airways has expanded its operational capacity with the induction of a Boeing 737-800, registered as 9A-ICF. The addition brings the carrier’s total fleet to five aircraft, supporting its growing footprint in the European wet-lease market.

The airline announced the fleet addition in early June 2026 through an official company statement. The aircraft represents the fourth Boeing 737-800 to join the Zagreb-based operator, which specializes in providing Aircraft, Crew, Maintenance, and Insurance (ACMI) services to partner airlines.

Aircraft history and specifications

The newly inducted Boeing 737-800, specifically a 737-8FZ variant, is powered by CFM International CFM56-7B26 engines and configured with 189 economy-class seats. According to fleet data from AvioRadar, the airframe holds Manufacturer Serial Number (MSN) 29659 and Line Number 3280.

Prior to joining ETF Airways, the aircraft operated for multiple carriers across Asia and Europe. Its operational history includes the following milestones:

  • May 2010: Completed its first flight and was delivered to Shandong Airlines, registered as B-5531.
  • September 2018: Transferred to South Korean low-cost carrier Eastar Jet, registered as HL8325.
  • February 2026: Placed in storage under the Norwegian Air Shuttle Air Operator Certificate, registered as LN-NIK.
  • June 2026: Officially entered service with ETF Airways as 9A-ICF.

In its announcement, ETF Airways highlighted the role of the new aircraft in maintaining operational reliability.

As our fleet continues to grow, so does our commitment to delivering safe, reliable, and exceptional service to our partners and passengers around the world.

Strategic growth and diversification

The arrival of 9A-ICF follows a period of strategic diversification for ETF Airways. In March 2026, the airline took delivery of its first turboprop aircraft, an ATR 72-600 registered as 9A-ATR. This marked a departure from its previously all-jet fleet, allowing the company to target regional market segments and short-haul ACMI contracts.

The fleet expansion aligns with broader infrastructure investments by the company. In late 2025, ETF Airways outlined plans to establish a dedicated maintenance base at Zadar Airport (ZAD) in Croatia, alongside the formation of independent maintenance and travel subsidiaries.

AirPro News analysis

We view ETF Airways’ dual-pronged fleet strategy as a calculated response to shifting demands in the European ACMI sector. By maintaining a core fleet of 189-seat Boeing 737-800s, the airline can seamlessly integrate into the summer schedules of major European leisure and low-cost carriers. Simultaneously, the recent introduction of the ATR 72-600 provides the flexibility to serve thinner regional routes where narrowbody jets are economically unviable. Securing mid-life 737-800s from the secondary market remains a cost-effective method for ACMI operators to scale capacity without the capital expenditure required for new-generation aircraft.

Sources: ETF Airways

Photo Credit: ETF Airways

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Aircraft Orders & Deliveries

Azorra Completes Placement of 12 Ex-EGYPTAIR A220-300s

Azorra delivers final ex-EGYPTAIR A220-300 to Breeze Airways, with four airframes parted out to address PW1500G engine shortages.

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Aircraft lessor Azorra has finalized the placement of 12 Airbus A220-300 aircraft formerly operated by EGYPTAIR, concluding a transaction that redistributes the narrowbody jets to new operators and dismantles select airframes to ease industry-wide supply chain constraints.

In a press release issued on June 10, 2026, Azorra confirmed the delivery of the final aircraft from the portfolio to Breeze Airways. The lessor initially purchased the 12 aircraft in February 2024 to facilitate the Egyptian flag carrier’s fleet transformation program.

Fleet redistribution and strategic part-outs

According to reporting by Air Data News, the 12 aircraft have been divided among three primary destinations. Breeze Airways received seven of the airframes, while Cyprus Airways took delivery of one.

The remaining four aircraft were allocated for a more unconventional purpose. In April 2025, Azorra entered an agreement with Delta Material Services to part out the four young airframes. Cirium Profiles data indicates this move was designed to supply critical components and spare Pratt & Whitney PW1500G engines to support Delta Air Lines and its active A220 fleet.

Azorra Chief Executive Officer John Evans stated the transaction demonstrates the company’s ability to create innovative solutions across the aviation ecosystem.

“Beyond expanding our A220 portfolio, these aircraft are helping address critical spare engine and parts availability challenges while supporting operators around the world,” Evans said.

Evans also noted the collaboration of Airbus and Pratt & Whitney throughout the complex transaction process, reaffirming the lessor’s confidence in the A220’s economics and performance.

EGYPTAIR’s operational shift

The sale of the A220-300 fleet resolves ongoing operational challenges for EGYPTAIR. Aviation Week previously reported that the carrier had grounded portions of its A220 fleet due to durability issues and maintenance delays associated with the PW1500G engines.

By divesting the relatively young aircraft, EGYPTAIR aims to improve maintenance commonality and focus on other aircraft types within its network.

Capt. Ahmed Adel, Chairman & CEO of EGYPTAIR Holding Company, noted the transaction formed an important part of the airline’s fleet transformation strategy. He expressed confidence that the aircraft would continue to deliver strong value for their new operators.

AirPro News analysis

The decision to part out four young Airbus A220-300 airframes underscores the severity of the supply chain constraints currently impacting the global aviation industry. We view this as a highly pragmatic asset management strategy. While parting out early-life airframes is typically a last resort, the chronic shortage of spare PW1500G engines has altered the economic calculus for lessors and operators alike.

By sacrificing a portion of the ex-EGYPTAIR fleet, Azorra is enabling Delta Air Lines to keep a larger portion of its own A220 fleet operational. This transaction also solidifies Azorra’s position as a dominant player in the A220 market. The lessor currently has 28 A220s in service globally and another 15 on order, representing a significant portion of its 338-asset portfolio.

Sources: Azorra

Photo Credit: Azorra

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