GE Aerospace and RTX Face $1 Billion in Tariff Impact

Petropolis, Brazil — GE Aerospace and RTX are expecting a combined tariff impact exceeding $1 billion, as U.S. manufacturing giants adapt to new trade policies. On an earnings call held Tuesday, RTX CFO Neil Mitchill revealed that the company anticipates an $850 million hit from tariffs imposed by President Trump, including new levies targeting countries like China and increased duties on imported steel and aluminum.

This impact does not factor in RTX’s own efforts to mitigate tariffs, Mitchill noted. Meanwhile, GE Aerospace has maintained its 2025 earnings outlook, planning to save approximately $500 million by cutting costs and adjusting prices.

During the same call, GE Aerospace CEO Larry Culp discussed a recent meeting with Trump, where they touched on the U.S. aerospace sector’s favorable trade balance. Culp stated, “All we have suggested is that the administration consider the position of strength that the country enjoys as a result of this tariff-free regime.”

GE Aerospace’s stock saw a rise of 3% Tuesday morning after reporting strong first-quarter results with an adjusted earnings per share of $1.49 on revenues of $9.94 billion, surpassing analyst expectations. The company kept its full-year guidance intact, expecting adjusted earnings between $5.10 to $5.45 per share.

“The macroeconomic dynamics we are operating in today require strategic actions such as controlling costs and leveraging available trade programs,” Culp said, emphasizing that the organization’s robust commercial services backlog of over $140 billion supports their forecasts.

Both GE and RTX are advocating for a tariff structure that promotes free trade while expressing approval for the current administration’s efforts to boost U.S. manufacturing. Culp reiterated GE’s stance, saying, “We will continue to advocate an approach that re-establishes zero-for-zero tariffs.”

Looking ahead, executives from both companies remain cautious as they navigate the uncertain impact of tariffs on their business operations and profitability. “The situation remains fluid and it’s difficult to assess the impact,” said Calio, the CEO of RTX. “We will continue to look for opportunities to pass on higher costs, but it’s not a panacea to all things tariffs.”