The aerospace industry in the United States is bracing for significant financial repercussions due to the trade tariffs imposed by President Donald Trump. Major players like Rtx Corp (NYSE:RTX) and GE Aerospace (NYSE:GE) are forecasting substantial fiscal impacts, with RTX predicting an $850 million hit and GE Aerospace estimating around $500 million.
These tariffs, which include a 10% levy on certain imports and additional duties on steel and aluminum, are part of a broader shift in trade policies that affect U.S. manufacturers dependent on international supply chains.
In response, GE Aerospace plans to counterbalance these costs through strategic savings and price hikes while maintaining its 2025 earnings outlook. CEO Larry Culp has actively engaged in discussions with Trump to address the aerospace sector’s trade surplus and explore the potential benefits of a tariff-free trading environment.
As a traditionally duty-free industry, aerospace companies now face a cloud of uncertainty, with Boeing (NYSE:BA) among those preparing to release quarterly results in this challenging economic climate.
RTX, GE Aerospace Anticiate Substantial Impact from New Tariffs
The imposition of new tariffs under former President Donald Trump has sent ripples through the U.S. aerospace industry, with major companies like RTX and GE Aerospace anticipating substantial financial impacts. RTX has projected an $850 million setback, while GE Aerospace estimates a $500 million hit due to these trade policies.
These tariffs, which include a 10% levy on specific imports and additional duties on steel and aluminum, represent a significant shift in trade policy affecting U.S. manufacturers with global supply chain dependencies. In response to these challenges, GE Aerospace is implementing cost-saving measures and price increases to mitigate the financial burden, while still aiming to meet its 2025 earnings targets.
RTX and GE Stock Brief
The stock market has shown varied responses to the trade policy changes, with notable movements in the prices of RTX and GE Aerospace shares. RTX’s stock opened at $114.53 on April 22, 2025, down from the previous close of $126.12, and has fluctuated between a low of $113.97 and a high of $117.19 during the day so far. The company’s market capitalization stands at $156.95 billion, with a dividend yield of 2.0%.
Meanwhile, GE Aerospace’s stock opened higher at $186.50 compared to the previous close of $178.35, reaching a high of $188.00 and a low of $182.215. The company’s market capitalization is $201.39 billion, with a dividend yield of 0.81%. Both companies have received positive recommendations from analysts, with RTX rated as a “Buy” and GE Aerospace as a “Strong Buy,” reflecting investor confidence despite the challenging economic environment.
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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