US Regional Carrier SkyWest Airlines has expressed its desire to pay sudden tariffs on the Brazilian-made Emblem Jets, suggesting that aircraft delivery could be postponed or cancelled if the Trump administration's proposed tariffs on Brazil come into effect.
Earlier this month, US President Donald Trump threatened to place 50% higher duties on products imported from Brazil.
Unless aerospace exemptions are engraved, the strict US tariff system almost certainly increases the costs of Embraer-manufactured aircraft.
Skywest previously declined to comment on the developing situation, but noted on July 11th that “many changes have changed and it's too early to say.”
However, ChipChiles addressed a question looming in SkyWest's second quarter revenue call on July 24th.
“If implemented, tariffs on Brazil are not expected to change production forecasts for 2025,” Childs says. “However, we are not going to pay 50% customs duties on new aircraft delivery.”
“Although aircraft in all regions are produced outside the US, SkyWest is best located in the industry segment to manage through these macroeconomic challenges,” he adds.
Childs promotes strong relationships with SkyWest with major airline partners as well as “people who are very interested in ensuring sustainable solutions.”
Skywest is one of Embraer's biggest customers, with a large fleet of E175s, with dozens more being delivered.
Last month, Skywest disclosed plans to buy 16 new E175s flying under a multi-year contract with Delta Air Lines. Delivery is scheduled to begin in 2027.
Carrier expects to operate 300 twin jets by 2028.
Skywest holds a solid delivery position with an additional 44 E175 between 2028 and 2032.
Childs says the ability to “defer or cancel these aircraft” provides airlines with “unparalleled fleet flexibility.”
Embraer could address tariff issues during its quarterly revenue call on August 5th.
Skywest reported second quarter profit of $120 million, with Childs describing demand for air services in small and medium-sized regions across the US as “as strong as we've seen before.”
One potential cause of optimism is the trade agreement recently agreed between Washington and the European Union.
Aircraft and air parts are exempt from import duties under their contract. This was announced on July 27 by Scotland President Ursula von del Reyen and Scotland President Donald Trump.
