SAO PAULO, Brazil (AFP) — Brazilian aircraft manufacturer Embraer on Tuesday reported a record order backlog in the third quarter of US$31.3 billion after dodging the worst of US tariffs.

The world’s third-largest aircraft manufacturer hailed an “unprecedented high” in orders led by the commercial aviation sector with a backlog of 490 aircraft.

US President Donald Trump in August imposed a further 40 per cent tariff on Brazilian goods, but exempted aircraft.

This was crucial for Embraer as the United States represents 45 per cent of its commercial aircraft market and 70 per cent of its executive aircraft market.

The company was still affected by the baseline 10 per cent tariff applied to all imports in April and has called for a swift return to “zero tariff rules for all aviation and aerospace industry”.

Brazil was slapped with higher rates over what Trump termed a “witch-hunt” against his ally, far-right former President Jair Bolsonaro.

Bolsonaro was sentenced to 27 years in prison for plotting to overthrow President Luiz Inacio Lula da Silva after his 2022 election loss.

Bolsonaro’s trial and the resulting tariffs and sanctions on Brazil strained diplomatic ties between the two countries.

However, in recent weeks there has been a thaw in tensions, with a 30-minute phone call between Lula and Trump and a meeting between the countries’ top diplomats in Washington.

Brazil’s presidency has said it is possible that the two leaders could meet this weekend at the summit of the Association of Southeast Asian Nations (ASEAN) in the Malaysian capital.

A European diplomat told AFP on condition of anonymity earlier this month that lobbying by Embraer and other major Brazilian companies had helped unlock the dialogue.

Embraer said it had delivered 62 aircraft in the third quarter, including 41 business jets, 20 commercial aircraft, and one military aircraft.

The order backlog represented a 38 per cent increase from the third quarter of 2024.