Uncertainty over U.S. tariffs is making airlines hesitant to accept new aircraft, raising concerns across the aviation industry.
The International Air Transport Association said the tariffs could affect not only major manufacturers like Boeing and Airbus but also smaller players and most airlines.
Speaking at a media roundtable in Singapore, IATA Director-General Willie Walsh said the entire aerospace sector could face disruptions due to the trade measures.
The comments came a day after Embraer warned that the planned 50% tariff on Brazilian exports starting in August could severely impact its business. The company said the tariff could have effects similar to the COVID-19 crisis.
Embraer CEO Francisco Gomes Neto said the proposed duties would act as a trade embargo on the regional jets it sells to U.S. airlines.
He warned that the move could lead to order cancellations, delivery delays, and financial pressure on U.S. suppliers tied to Embraer.
The Biden administration has not yet confirmed whether it will proceed with the tariffs announced earlier this year by former President Donald Trump.
The situation adds to ongoing concerns in the aviation sector, which is already facing rising costs and supply chain issues.
Airlines have been reviewing fleet expansion plans, and further uncertainty may slow down recovery in the sector.
Analysts say any decision to implement the tariffs could ripple across the global aircraft supply chain.
