RTX and GE Aerospace are bracing for an upwards of $1 billion financial impact collectively due to tariffs imposed by President Donald Trump on imported goods. This development signals a potential rise in costs for significant U.S. manufacturers reliant on international supply chains.
During a recent earnings call, Neil Mitchill, the chief financial officer of RTX, predicted that the company would incur an $850 million loss this year stemming from tariffs, which include the recent 10% levies introduced by Trump, additional duties on imports from countries like China, and separate tariffs on steel and aluminum.
Mitchill noted that this projection does not factor in the company’s own initiatives to mitigate tariff impacts.
On its end, GE Aerospace, which produces engines for widely used Boeing and Airbus aircraft, has maintained its 2025 earnings forecast while aiming to achieve around $500 million in savings through cost reductions and price increases.
In an analyst call, GE Aerospace’s CEO Larry Culp revealed that he recently spoke with Trump regarding the trade surplus within the U.S. aerospace sector. GE collaborates with France’s Safran in a joint venture focused on engine production.
This latest round of tariffs marks a significant departure for an industry that has long benefited from largely duty-free trade.
“We have merely suggested that the administration, as it navigates various issues, consider the strong position that this country has enjoyed as a result of a tariff-free environment,” Culp stated.
The White House has yet to respond to inquiries about the matter.
Meanwhile, Boeing, a key customer for both RTX and GE Aerospace, is set to announce its quarterly results just before the market opens on Wednesday.
In light of weaker demand, airlines have recently announced reductions to their U.S. domestic capacity plans for the remainder of the year. Executives, however, have cautioned that forecasting the economy’s trajectory or future trade strategies remains challenging. United Airlines provided two distinct earnings forecasts for 2025, one assuming a recession and another considering a stable market.
“There is uncertainty,” Culp remarked on Tuesday. “None of us can be certain about how this situation will unfold.”
