American aerospace and defense groups warn against the higher costs of Trump prices

by admin
Assembly technicians at the General Electric Aviation jet engine facility in Lafayette, Indiana

Unlock the White House Watch watch newsletter for free

American aerospace and defense manufacturers have warned of higher costs while Donald Trump trade disorders continue to disrupt global supply chains in industry.

Larry Culp, Managing Director of Ge Aerospace, said that the manufacturer of reaction engines would be based on price increases and other measures to reduce the impact of price On its activities even when the company has reaffirmed its procurement forecasts in the full year. CULP said he had urged President Trump and other people in the administration to restore the industry's without rate.

“We were … in its own right in our support for administration's efforts to support American competitiveness and revitalize American manufacturing,” Culp told analysts on a call for results.

However, it was “easy to forget about the commercial surplus of $ 75 billion which has largely enjoyed on this rate without a price that we have since 1979,” he added.

The trade war has sparked the greatest uncertainty in the sector since the cocovated pandemic, disturbing its closely integrated supply chains and causing a debate on who will end up paying the additional features of functions.

In addition to a period of 18 months of samples imposed within the framework of the dispute on subsidies for Boeing and Airbus, the industry has been working largely without commercial barriers since 1979.

Gesaid Culp, had suggested that the administration “envisages the position of force which the country enjoys following this regime without a price and to consider restoring the same thing”.

The trade war should also hit GE spare motors and delivery of spare parts to China, according to Culp.

GE shares increased by 6.1% on Tuesday when investors ignored the price uncertainty and focused on the company by maintaining its directives in the year.

RTX Corporation, on the other hand, fell by 9.8% after warning that it could undergo a blow of $ 850 million for operating profit before Trump if steel and aluminum imports and goods arriving from China, Canada and Mexico had to stay in place until the end of the year.

The Pratt & Whitney of RTX subsidiary builds reaction engines for civil aircraft while its Raytheon defense unit is the manufacturer of the Patriot anti -missile defense system. The company declared the financial results better than expected and maintained its financial prospects.

Northrop Grumman's shares have dropped by 12.7%, the greatest daily decrease since 2008, after the defense entrepreneur said that net profit had almost half a year at $ 481 million.

Higher manufacturing costs on its stealth bomber B-21 meant that the company declared a loss before tax of 477 million dollars for the program in the first quarter of 2025. Asked for its profile call on prices, Northrop said that this is learned about 5% of its total expenses, or less than $ 1 billion.

Source Link

You may also like

Leave a Comment