Director-General of International Air Transport Association,Willie Walsh, has said that Airlines could hesitate to accept aircraft deliveries amid ongoing uncertainty over United States tariffs and their potential impact on plane costs.

This was disclosed by Walsh on Wednesday while speaking at a media roundtable in Singapore.

“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.

The 50% tariff on Brazilian exports set to take effect in August by U.S. President Donald Trump could hit Embraer’s revenue as hard as the COVID-19 pandemic did, the company’s CEO,

Francisco Gomes Neto, warned on Tuesday, highlighting potential risks for U.S. partners.

Neto told reporters the proposed tariffs would effectively act as a trade embargo on the regional jets Embraer supplies to U.S. airlines, potentially leading to order cancellations, delivery deferrals, and serious repercussions for the company’s U.S.-based suppliers.

Last week, Trump threatened to impose a crippling 50% tariff on Brazilian exports starting August 1, according to a letter sent to President Luiz Inácio Lula da Silva.

In the letter posted on Truth Social, Trump accused President Lula of conducting a “Witch Hunt that should end IMMEDIATELY!” in response to legal proceedings against Brazil’s right-wing former president, Jair Bolsonaro.

The U.S. recorded a $6.8 billion trade surplus with Brazil last year, exporting more goods to the South American nation than it imported.

According to U.S. Census Bureau data, top American exports included aircraft and spacecraft, fuels, industrial machinery such as nuclear reactors, and electrical equipment.