The aerospace industry, a cornerstone of the US economy, is feeling the sting of President Donald Trump’s tariffs. Recent earnings calls from RTX and GE Aerospace revealed a combined projected loss exceeding $1 billion, a stark illustration of the impact of these trade policies on major manufacturers.
RTX, a prominent defense contractor and commercial aerospace supplier, anticipates a staggering $850 million hit this year due to tariffs. This figure, according to CFO Neil Mitchill, doesn’t even account for the company’s efforts to mitigate the effects of these increased costs. The tariffs include the sweeping 10% duties imposed earlier this month, along with higher tariffs on countries like China and additional levies on imported steel and aluminum.
GE Aerospace, a key player in the production of engines for Boeing and Airbus aircraft, maintained its 2025 earnings outlook. However, the company acknowledged the significant financial burden, estimating a potential $500 million loss. To offset some of this impact, GE plans to implement cost-cutting measures and increase prices. CEO Larry Culp recently met with President Trump to discuss the aerospace sector’s trade surplus and the implications of the new tariffs.
This situation represents a significant shift for a global industry accustomed to largely duty-free trade for decades. The reliance on a global supply chain, crucial for the production of engines, airplanes, and other aerospace products, makes the US aerospace sector particularly vulnerable to these tariffs. Mr. Culp highlighted the industry’s long-standing tariff-free regime and expressed hope for a reconsideration of these policies.
The White House has yet to respond to these concerns. Meanwhile, Boeing, a major customer of both RTX and GE Aerospace, and the leading US exporter, is set to release its quarterly results soon, offering further insights into the broader impact of these tariffs on the sector.
The uncertainty extends beyond the manufacturers. Airlines have already announced cuts to domestic capacity due to weaker demand, further complicating the economic outlook. United Airlines, for example, released two distinct earnings forecasts for 2025 – one assuming a recession and the other a status quo – highlighting the prevalent uncertainty regarding the economic and trade landscape. The current climate underscores the complex interplay between trade policy, economic forecasts, and the overall health of the US aerospace sector. The coming months will undoubtedly reveal more about the long-term consequences of these tariffs.
