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The Brazilian rival to Boeing and Airbus warned that Trump's planned 50% tariffs will hit it as hard as COVID-19

1. Embraer warns tariffs could impact revenues as severely as COVID-19. 2. Trump proposed a 50% tariff on Brazilian exports starting August 1. 3. Embraer exports nearly half of its regional airliners to the US market. 4. Tariffs could disrupt global supply chains, affecting major aviation players like Boeing. 5. The aviation industry pressures against tariffs due to complex dependencies.

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FAQ

Why Bearish?

The potential imposition of high tariffs could significantly hurt Embraer's competitive positioning, impacting BA indirectly, as seen historically during trade disputes. Similar past tariff situations have caused market volatility and price drops.

How important is it?

The article highlights significant trade implications that can affect the entire aviation sector, including BA, by potentially raising costs and reducing demand.

Why Short Term?

The tariffs are set to take effect imminently and could quickly influence BA’s stock, similar to other rapid tariff implementations in the past.

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