Air TransportEmbraer has reportedly proposed establishing a KC-390 Millennium production line in the United States, in an effort to avoid potential tariff increases on its aircraft.
According to a report by Brazilian outlet Revista Oeste, the company suggested to the Trump administration an investment of about US\$500 million that could create 2,000 jobs in the US. The magazine did not name its sources or specify where the assembly line might be located.
The move comes after Embraer was spared an additional 40% import tariff on aircraft, which took effect in August 2025. The company already maintains significant operations in the US, employing more than 2,500 people across multiple facilities, including assembly lines for the E175 regional jet, a model primarily delivered to North American airlines.
Embraer has been actively promoting the KC-390 Millennium to the US Air Force and other branches of the military. The aircraft is designed for multiple roles, including cargo and troop transport, aerial refueling, reconnaissance, and maritime patrol.
The company has previously proposed a tactical tanker version of the Millennium, capable of operating from unprepared runways and supporting missions closer to the frontline — a capability that could complement or replace older models like the KC-135 and even compete with Boeing’s KC-46 Pegasus.
However, current USAF plans indicate a preference for expanding orders of the KC-46 as a simpler and more cost-effective option.
Despite trade tensions, Embraer’s deep integration with US aerospace supply chains likely contributed to its exemption from the new tariffs. The company imports 60% more in value from the US than it exports and maintains a strong industrial presence in the country, a factor that strengthens its position in future negotiations.
If approved, a KC-390 assembly line in the US could significantly boost the aircraft’s visibility and competitiveness in one of the world’s largest defense markets.
