Embraer Plans $1 Billion US Investment To Mitigate Potential Trump Tariff Fallout: Report

Embraer SA (ERJ) on Tuesday reportedly announced that it is planning to invest up to $1 billion in the U.S. to mitigate the impact of potential tariffs from the Trump administration.

The Brazilian airplane manufacturer said it is considering investing $500 million in a new assembly line in the U.S. if the United States government opts for its KC-390 military aircraft, according to a Bloomberg report.

Embraer’s shares were down 0.45% at the time of writing. Stocktwits data showed the retail sentiment around the ERJ stock was in the ‘bullish’ territory.

In a post-earnings conference call with investors, Embraer revealed its plans, saying it could invest another $500 million in its plants in Texas and Florida over the next five years, according to the report. This takes Embraer’s total planned U.S. investment outlay to $1 billion.

“We’re with a more manageable situation and have already included the impact of tariffs in our financial projections, maintaining our guidance for the year,” said Embraer CEO Francisco Gomes Neto on an earnings call on Tuesday, according to the report.

The planned investments aside, Embraer called for a return to a zero-tariff regime in the aviation and aerospace industries.

The Brazilian aircraft maker reported earnings per share (EPS) of $0.43 during Q2, in line with Wall Street expectations, according to Stocktwits data. Its revenue came in at $1.82 billion, edging past an expected $1.78 billion.

ERJ stock has surged 56% year-to-date and 111% over the past 12 months.

Also See: Palantir Stock Is ‘Dramatically Undervalued,’ Says Jim Cramer As Company Reports First Billion-Dollar Quarter

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