RTX and GE Aerospace Expect Over $1 Billion Impact from New Tariffs

Aerospace companies RTX and GE Aerospace are facing a combined impact of more than $1 billion due to new tariffs imposed by President Donald Trump on imported goods.

Industry Response

RTX CFO Neil Mitchill mentioned that the $850 million estimate does not include RTX's own efforts to mitigate the tariff impact. Meanwhile, GE Aerospace plans to cut costs and raise prices to offset some of its $500 million impact.

GE's Engagement with the White House

GE Aerospace CEO Larry Culp revealed that he recently met with President Trump to discuss the trade surplus in the aerospace sector. GE, in partnership with France’s Safran, manufactures airplane engines, a major part of its business.

Broader Industry Concerns

The aerospace industry, which has relied on mostly duty-free trade for years, now faces new challenges with these tariffs. Both RTX and GE are adjusting to increased production costs and trade uncertainties.

Looking Ahead

As tariffs affect manufacturers and customers like Boeing, uncertainty remains in the aerospace and airline industries, with executives unsure of the long-term impacts of the new policies.