Aerospace giants RTX and GE Aerospace are warning that President Trump’s tariffs on imported goods and materials will have a significant impact on their businesses. The companies estimate a combined hit of over $1 billion, with RTX expecting to take an $850 million toll from the tariffs.
RTX CEO Neil Mitchill said on an earnings call that the company’s tariff mitigation measures do not include the impact of the sweeping 10% levies imposed by Trump earlier this month. The tariffs apply to countries such as China and separate taxes on imported steel and aluminum.
GE Aerospace, which makes engines for popular Boeing and Airbus planes, has estimated a $500 million hit from the tariffs. CEO Larry Culp said that he recently met with Trump and discussed the US aerospace sector’s trade surplus. GE will seek to save $500 million by cutting costs and raising prices.
The new tariffs mark a shift for a global industry that has enjoyed mostly duty-free trade for decades. The companies are warning that the uncertainty surrounding trade policies makes it difficult to predict future economic trends.
Boeing, a major customer of both companies, is scheduled to report quarterly results on Wednesday. Airlines have recently announced cuts to US domestic capacity plans due to softer demand, and executives emphasize that predicting the economy’s direction is challenging.
Source: https://www.cnbc.com/2025/04/22/rtx-ge-aerospace-tariff-impact.html