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Airlines May Be Reluctant to Take Aircraft Deliveries on Tariff Uncertainty, Iata Says
Published by Global Banking & Finance Review®
Posted on July 16, 2025
1 min readLast updated: January 22, 2026
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Airlines may delay aircraft deliveries due to US tariff uncertainties, affecting Boeing, Airbus, and Embraer, with potential order cancellations.
Airlines Hesitant on Aircraft Deliveries Amid Tariff Uncertainty
SINGAPORE (Reuters) -Airlines may be reluctant to take delivery of aircraft due to the ongoing uncertainty around U.S. tariffs and their impact on the cost of the planes, International Air Transport Association Director-General Willie Walsh said on Wednesday.
"It's not just going to be a major Boeing and Airbus issue. It'll impact all aspects of the aerospace industry and have an impact on most, if not all, airlines as well," he said.
Walsh was speaking at a media roundtable in Singapore.
The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports starting in August could hammer the revenue of planemaker Embraer like the COVID-19 pandemic did, its CEO warned on Tuesday, flagging risks to U.S. partners.
Francisco Gomes Neto told reporters the tariffs would amount to a trade embargo on the regional jets it supplies to U.S. airlines and could trigger order cancellations, deferred deliveries and tough consequences for Embraer's U.S. suppliers.
(Reporting by Jun Yuan Yong; Editing by Muralikumar Anantharaman and Sonali Paul)
Key Takeaways
- •Airlines are hesitant to accept aircraft deliveries due to US tariff uncertainties.
- •The tariffs impact major players like Boeing and Airbus.
- •Embraer warns of severe consequences from US tariffs.
- •Tariffs could lead to order cancellations and deferred deliveries.
- •The aerospace industry faces broad challenges from these tariffs.
Frequently Asked Questions about Airlines may be reluctant to take aircraft deliveries on tariff uncertainty, IATA says
1Why might airlines delay aircraft deliveries?
Airlines may be reluctant to take delivery of aircraft due to the ongoing uncertainty around U.S. tariffs and their impact on the cost of the planes.
2What is the potential impact of U.S. tariffs on the aerospace industry?
The tariffs could affect all aspects of the aerospace industry and impact most airlines, not just major manufacturers like Boeing and Airbus.
3What did Embraer's CEO say about the tariffs?
Embraer's CEO warned that the 50% tariff on Brazilian exports could act as a trade embargo on regional jets supplied to U.S. airlines, potentially leading to order cancellations and deferred deliveries.
4When are the U.S. tariffs set to be imposed?
The 50% tariff that U.S. President Donald Trump plans to impose on Brazilian exports is set to start in August.
5Where was the media roundtable held?
The media roundtable where these comments were made took place in Singapore.