RTX, GE Aerospace Anticipate Over $1 Billion in Tariff-Related Costs

RTX and GE Aerospace expect a joint financial impact of more than $1 billion because of President Donald Trump's new import tariffs on goods and materials that affects U.S. manufacturers who depend on worldwide supply chain operations.

RTX Chief Financial Officer Neil Mitchill projected during Tuesday's earnings call that the defense and aerospace supplier faces an $850 million impact from tariffs in 2025. The company must absorb both the general 10% tariff and additional duties that target China and specific steel and aluminum imports from other countries. The company has not included planned tariff mitigation approaches when making this assessment.

GE Aerospace presented its 2025 earnings projection in its Tuesday quarterly report yet revealed strategies to reduce approximately $500 million in tariff expenses by implementing price adjustments and cost reductions. GE Aerospace CEO Larry Culp expressed concern about the aerospace industry's trade surplus during discussions with Trump. He asked the administration to preserve the competitive benefit of the duty-free system which enables GE's engine production partnership with Safran of France.

The White House has not yet responded to these remarks.

The aerospace industry faces substantial changes because it has operated under duty-free international trade policies for many decades. The largest U.S. exporter Boeing will disclose its quarterly performance during the first part of Wednesday morning since it serves as a major customer for RTX and GE Aerospace.

Aerospace companies must navigate rising market uncertainty because of reduced domestic airline demand which forces airlines to decrease their U.S. operational capacity for 2025. United Airlines provided two different earnings predictions which represented a recession forecast and current market projections. The situation remains unclear according to Culp during Tuesday's analyst conference call. No one has the ability to predict the exact outcome of this situation.