Recent 20% drop in Embraer shares reflects fear, not fundamentals. Read why 50% tariff hike on Brazilian products is an investment opportunity with ERJ's case.

The Trump administration on July 30 issued an Executive Order that places 50% tariffs on numerous items exported from Brazil in seven days. However, In the official tariff order, the Administration stated civil aircraft, their engines, parts and components and other components and subassemblies are exempt from the levies.

Embraer dodged a bullet on Wednesday when U.S. President Donald Trump excluded aircraft from the steeper tariffs he imposed on many Brazilian goods, sparing the planemaker from a potential pandemic-like hit to its revenue.