GE Aerospace Plans $500 Million Cost Cuts to Offset Tariffs

GE Aerospace is implementing a strategic plan to mitigate the impact of tariffs by streamlining operations, seeking tariff refunds on exported components, and considering price increases, aiming to save $500 million. Despite these measures, the company has maintained its annual financial outlook but noted this does not account for potential recessions, new tariffs, or production slowdowns at major customers like Boeing and Airbus. CEO Larry Culp directly appealed to President Trump, advocating for a return to a tariff-free regime and emphasizing the benefits it brings to the aerospace supply chain and trade surplus. The company’s steady guidance contrasts with other aviation firms that have reduced capacity and withdrawn financial forecasts amid trade war uncertainty. GE Aerospace also expects to incur $100 million in costs in 2025 due to the new global minimum tax being adopted by several OECD countries, acknowledging the evolving nature of these rules. Investors remain concerned that additional duties could further strain the supply chain and aircraft delivery schedules.