US Aerospace Giants RTX, GE Project Over $1 Billion in Tariff-Related Costs

Leading aerospace manufacturers RTX and GE Aerospace estimate that recently imposed tariffs could cost them more than $1 billion combined, highlighting the growing financial toll of escalating trade tensions on US-based companies with global supply chains.

RTX, the defense and commercial aerospace firm formerly known as Raytheon, said on Tuesday it expects to incur about $850 million in tariff-related expenses this year. The estimate includes the broad 10% tariffs enacted earlier this month by President Donald Trump’s administration, as well as other duties on goods from countries like China and levies on imported steel and aluminum.

RTX Chief Financial Officer Neil Mitchill noted during an earnings call that the estimate does not yet factor in the company’s ongoing mitigation efforts. He also outlined specific risks, including potential impacts of approximately $250 million from tariffs on Canadian and Mexican trade, $250 million from Chinese tariffs, and another $300 million from potential reciprocal actions globally.

GE Aerospace, a division of General Electric that manufactures engines for Boeing and Airbus aircraft, said it expects about $500 million in related costs. CEO Larry Culp, speaking to analysts, confirmed that the company is looking to offset those costs through pricing strategies and cost-cutting measures. Culp also revealed he recently met with President Trump to discuss trade and the strength of the US aerospace sector, which he said benefits from a historically tariff-free trade regime.

The aerospace industry—deeply integrated into global supply networks—has largely operated in a free-trade environment for decades. But the latest tariffs mark a shift, creating uncertainty for manufacturers and their suppliers. Companies now face higher costs for components and materials, particularly metals and parts sourced internationally.

Despite the projected tariff headwinds, both RTX and GE Aerospace reaffirmed their financial guidance for the year. RTX reported better-than-expected quarterly results, with earnings of $1.47 per share on sales of $20.3 billion, and said it remains on track to meet its full-year targets. The company also pointed to strong demand in its defense segment, especially as the Trump administration has proposed a record-high defense budget approaching $1 trillion.

GE Aerospace maintained its 2025 earnings outlook and emphasized resilience in its jet engine services business, buoyed by sustained demand in global air travel.

However, the broader outlook remains uncertain. With ongoing trade disputes and shifting policy dynamics, executives at both firms expressed caution about the future.

“None of us, I think, know for sure how this plays out,” said Culp.

With input from CNBC and Bloomberg.