From Morningstar: 2025-04-04 05:37:00

President Donald Trump has imposed new tariffs on imports from US global trading partners to boost domestic manufacturing. This move affects aerospace firms, some of the US’ biggest exporters, leading to concerns about retaliatory tariffs. In 2024, US aerospace firms’ sales outside the US were substantial, with companies like Boeing and Raytheon heavily reliant on international customers.

The impact of import tariffs on US aerospace firms may be overestimated. Boeing’s CFO stated that most of the company’s spending is domestic and the tariffs would have a limited effect. Similar dynamics are seen across the industry, with supply chain availability issues possibly resurfacing. Analysts are reviewing forecasts based on each company’s exposure to exports and competitive position.

Morningstar analysts expect to lower their fair value estimate for no-moat Textron due to its exposure to international markets and limited pricing power compared to wide-moat peers. The impact of retaliatory tariffs and economic positioning will influence forecasts. Companies like Textron are likely to see a slight reduction in fair value estimates based on these factors.



Read more at Morningstar: US Aerospace and Defense: New Tariffs Could Cause…