SEATTLE, WA – July 18, 2025 – Horizon Air, a regional subsidiary of Alaska Air Group, has resumed deliveries of its Embraer E175 regional jets after a brief but impactful delay caused by the imposition of tariffs by the U.S. government on imports from Brazil. The airline confirmed the delivery and immediate integration into its fleet of two E175 aircraft (N668QX and N669QX), which had been held back due to the additional costs associated with the tariffs.
The pause in deliveries had led Horizon Air to trim its summer schedule and cancel a number of flights, primarily impacting high-frequency routes in the Pacific Northwest. Alaska Air Group had previously stated that it would not accept additional costs imposed by the tariffs, leading to the temporary halt in receiving the aircraft from the Brazilian manufacturer, Embraer.
Navigating Tariff Turbulence:
The E175, a cornerstone of U.S. regional aviation, is built by Embraer in Brazil. Earlier this year, the U.S. government, as part of broader trade negotiations with Brazil, had imposed a 10% tariff on certain imported goods, including aircraft. This added a significant cost burden to airlines purchasing these jets. More recently, the situation escalated with threats of a 50% tariff on all Brazilian imports, set to take effect on August 1, 2025, which Embraer’s CEO warned could have a “pandemic-like impact” on the company, making E175 shipments “unfeasible.”
While the specifics of the resolution that allowed Horizon Air to take delivery are not fully public, it is understood that airlines and Embraer have been actively seeking solutions to mitigate the financial impact of these tariffs. Some industry speculation suggested potential workarounds, such as acquiring the aircraft as “used” after initial flights, or agreements between Embraer and the airlines to absorb or discount the tariff’s cost.
Fleet Expansion Continues, Albeit Carefully:
With the two new E175s now in service, Horizon Air’s fleet of Embraer 175s grows to 47 aircraft. The airline still has three more E175s on order, but these are not expected to be delivered in 2025. This cautious approach reflects the ongoing uncertainty surrounding the future of U.S.-Brazil trade relations and the potential for new or increased tariffs.
The E175 remains a vital aircraft for regional networks across the United States, providing essential connectivity from smaller communities to larger hubs. The swift resumption of deliveries by Horizon Air, a key regional partner for Alaska Airlines, highlights the critical need for these aircraft to maintain operational capacity and meet passenger demand.
The broader aviation industry will be closely watching developments in U.S.-Brazil trade policy, as the outcome of these tariff disputes will significantly influence fleet planning and operational strategies for airlines relying on Embraer’s regional jets. For now, Horizon Air’s ability to overcome this hurdle offers a glimmer of stability in a volatile trade environment.
