GE Aerospace and RTX Warn of Soaring Costs Due to Trade Restrictions
U.S.-based aerospace giants GE Aerospace and RTX have issued warnings about rising trade tariffs, highlighting that by 2025, these costs could place a significant financial burden on both companies. Combined, the tariff-related expenses for the two firms are expected to exceed $1.3 billion.
GE Aerospace is planning to introduce “tariff surcharges” for customers to offset these additional costs. The company stated that if the 10% import tariff remains in effect, its own share of the burden could reach $500 million. RTX estimates its tariff-related costs may climb to around $850 million.
Despite the challenging outlook, both companies are experiencing strong demand—particularly in maintenance, repair, and spare parts sectors. However, RTX acknowledged that current market conditions do not allow for full cost pass-through to customers. GE, on the other hand, views the increases as temporary and argues for a complete removal of tariffs in the aviation sector.
To maintain profitability in this uncertain environment, both companies aim to tighten cost control measures and optimize logistics. Given RTX’s vast influence in the industry through subsidiaries like Collins Aerospace and Pratt & Whitney, these developments could have widespread implications for the global aerospace sector.
