Brazilian aircraft manufacturer Embraer SA warned that it will have to battle order cancellations and delays if U.S. President Donald Trump’s punitive tariffs are implemented.

“We don’t have any cancellation issues at this point in time, but mid-term, this might happen,” CEO Francisco Gomes Neto said in an interview with Bloomberg Television’s Haslinda Amin on October 26 at the Association of Southeast Asian Nations summit in Malaysia.

It would be bad for “the U.S. industry because if we make fewer aircraft, we buy fewer equipments from the U.S. That’s why the zero tariffs is important,” he said. Neto estimated the move by Trump could add on $2 million per aircraft.

The Brazilian company still faces a tariff impact of about $80 million this year, roughly equivalent to second quarter net income. The planemaker’s product and parts were among exemptions from higher tariffs slapped on the South America’s largest economy in response to the treatment of ex-leader Jair Bolsonaro.

The CEO also said the company still has about $31 billion in backlog of new orders, its highest level in nine years.

His comments come as Brazil’s government still remains at odds with Washington. However, Brazil’s Luiz Inacio Lula da Silva is hoping to meet in Malaysia with Trump to convince him to cut punitive duties to 10% from 50%.

At stake for Embraer are plane orders, as tariffs raise the cost of its products. The planemaker is considering a $500 million investment in a new U.S. assembly line that would create 2,500 jobs if the U.S. government selects its KC-390 military aircraft. The company also plans to invest another $500 million in plants over the next five years.

The maker of commercial, business and defense jets is managing to weather the tariff threats with strong earnings growth, Amin said, adding the company has a “robust plan” for the next year.