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Airlines may be reluctant to accept aircraft due to tariff costs, global airline association warns
July 18th 2025
Airlines may shy away from taking delivery of aircraft as a result of U.S. tariffs and their impact on the pricing of commercial jets, International Air Transport Association (IATA) director general, Willie Walsh, said at a media round table in Singapore this week. Read More » “It is not just going to be a major Boeing and Airbus issue. It will impact all aspects of the aerospace industry and have an impact on most, if not all, airlines,” he said. Also this week, Embraer CEO, Francisco Gomes Neto, said the potential 50% tariff the U.S. intends to impose on Brazilian exports from August 1 could cost the aircraft manufacturer 20 billion reais ($3.6 billion) by 2030. “Tariffs at 50% may force the company to revise its business and investment plan. There is no way to re-allocate U.S. customer orders to other markets,” Neto said.