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The manufacturer of French reaction engines Safran said that China had granted pricing exemptions for imports of certain aerospace parts, even if it has warned that the constantly evolving tariff landscape made it difficult to measure the impact on its activities.
Managing Director Olivier Andriès said China had exempt “any delivery of engines, nacelles (engine boxes), gears or landing parts” from import taxes, adding that it was a sign of the fluidity of the situation.
Saffron Take action to mitigate prices, he said, but “would not be shy” to transmit some of the additional costs for customers. “This tariff situation creates inflation, so we will impose a surcharge on our customers,” he told journalists and analysts on Friday.
The company's shares increased by almost 5% on Friday morning after having displayed results better than expected despite the pricing And as signs have emerged, China and the United States weighed exemptions on certain imports.
China's decision to exempt certain parts is a sign of a possible softening of the tension between the two countries.
The aerospace industry is based on integrated global supply chains and is particularly exposed to the trade war launched by US President Donald Trump. Boeing said this week China had stopped taking deliveries from its jets While buyers are picking up at higher costs compared to the country's reprisals of 125% on American imports.
Safran is part of the CFM international joint venture with Ge Aerospace which provides engines for the C919 plane built by the Chinese comac. Analysts warned that the manufacturer supported by the state could have problems guaranteeing critical documents due to the trade war.
Companies work to mitigate the impact of tariffs on industry.
Safran has a manufacturing base in Mexico that provides the American market. Andriès said that the company was working to ensure that Mexico parts were covered by the trade agreement between the United States, Mexico and Canada and excluded from prices, in particular by providing additional certification of origin.
Safran also uses glued warehouses, storage facilities near ports and airports that do not require companies to immediately pay import rights.
Safran maintained its directives for 2025 but without including the impact of prices. Other companies in the sector, including GE, RTX and Boeing, have taken into account additional costs, noted Nick Cunningham, analyst at Agency Partners.
“The exemptions change every week, sometimes every day. This is why we are reluctant to communicate on the quantification of the impact,” said Andriès.
Safran declared a 16.7% increase in income to 7.3 billion euros in the first three months of 2025, above the estimates of analysts.
Sales were motivated by its propulsion division, which includes its Leap engines used by Boeing and Airbus.
