PETROPOLIS, RIO DE JANEIRO, BRAZIL – The impact of President Donald Trump’s tariffs on imported goods and materials is expected to surpass $1 billion for RTX and GE Aerospace. This marks a significant challenge for major U.S. manufacturers, as they navigate higher prices within a global supply chain.
During an earnings call, Neil Mitchill, the chief financial officer of defense contractor and commercial aerospace supplier RTX, revealed that the company anticipates an $850 million hit this year due to tariffs imposed by President Trump. These tariffs include the recent 10% tariffs implemented by the administration, as well as increased duties on countries like China, and separate duties on imported steel and aluminum.
GE Aerospace, known for manufacturing engines for popular Boeing and Airbus aircraft, announced in its quarterly report that it will maintain its 2025 earnings outlook. To counterbalance the impact of tariffs, the company plans to save approximately $500 million through cost-cutting measures and price adjustments.
CEO of GE Aerospace, Larry Culp, mentioned having recent discussions with President Trump regarding the U.S. aerospace sector’s trade surplus. GE’s partnership with France’s Safran in producing airplane engines adds to the global implications of the tariffs on the industry.
The introduction of these tariffs signals a significant departure for an industry that has long benefitted from duty-free trade agreements. Culp emphasized the importance of the U.S. government taking into account the strengths derived from the existing tariff-free regime.
As companies like Boeing, a major client for both RTX and GE Aerospace, prepare to reveal their quarterly results, the uncertainty surrounding future trade policies and economic conditions remains a prominent concern for the industry. Airlines have already begun adjusting their plans due to softer demand, highlighting the unpredictable nature of the current economic landscape.
In the midst of these challenges, executives stress the need for flexibility and the ability to adapt to evolving market conditions. The true impact of the tariffs and potential future trade policies remains to be seen, leaving many within the industry on edge as they navigate this new reality.