In this articleRTXGEFollow your favorite stocksCREATE FREE ACCOUNTMen work with a jet engine at General Electric (GE) Celma, GE’s aviation engine overhaul facility in Petropolis, Rio de Janeiro, Brazil.YASUYOSHI CHIBA | AFP | Getty ImagesRTX and GE Aerospace expect a more than $1 billion impact combined from President Donald Trump’s tariffs on imported goods and materials, the latest sign of higher prices for major U.S. manufacturers that rely on a global supply chain.Neil Mitchill, chief financial officer of defense contractor and commercial aerospace supplier RTX, said on an earnings call Tuesday that the company will likely take a $850 million hit this year from tariffs, including the sweeping 10% levies that Trump imposed earlier this month alongside higher duties on countries like China and separate taxes on imported steel and aluminum.That estimate doesn’t include RTX’s own tariff mitigation measures, Mitchill said.GE Aerospace, which makes engines for popular Boeing and Airbus planes, kept its 2025 earnings outlook in place during its quarterly report Tuesday and said it would seek to save about $500 million by cutting costs and raising prices.GE Aerospace CEO Larry Culp said on Tuesday’s analyst call that he recently met with Trump and discussed the U.S. aerospace sector’s trade surplus. GE has a joint venture with France’s Safran to make popular airplane engines.Read more CNBC airline newsAirlines bank even more on splurging vacationers as clouds form on the economyDelta pulls 2025 forecast as CEO says Trump’s trade war is hurting bookingsUnited Airlines adds Thailand, Vietnam and Australia flights in latest expansionGoodbye to ‘bags fly free’ on Southwest, the last free perk in AmericaThe new tariffs are a shift for a global industry that has enjoyed mostly duty-free trade for decades.”All we have suggested is the administration works through a myriad of issues, is they can consider the position of strength that the country enjoys as a result of this tariff-free regime,” Culp said.The White House didn’t immediately comment.Boeing, a major customer of both companies and the top U.S. exporter, is scheduled to report quarterly results before the market opens on Wednesday.Airlines have recently announced cuts to U.S. domestic capacity plans this year because of softer demand, but executives have emphasized it is hard to predict the direction of the economy or future trade policies. United last week provided two earnings outlooks for 2025, one in the event of a recession, one assuming status quo.”There is uncertainty,” Culp said Tuesday. “None of us, I think, know for sure how this plays out.”Don’t miss these insights from CNBC PROHow Warren Buffett handled past market crises’Big Short’ investor Steve Eisman on tariff turmoil: Don’t be a heroHighest tariffs since the ’30s to trigger recession, S&P 500 decline to 4,200-4,500, says BCA ResearchOne group of stocks is emerging as a bright spot in the tariff sell-off …
