Aerospace firms reviewing contracts for tariffs impact, leading to uncertainty and potential challenges for industry

From Yahoo Finance: 2025-04-07 17:00:00

Planemakers, airlines, and suppliers are reviewing contracts to assess exposure to tariffs after Howmet Aerospace declared a “force majeure event” due to Trump’s tariffs. Higher costs could lead to increased fares for passengers. Airbus and Boeing may face challenges due to the tariffs. Howmet’s move could impact negotiations for future jet developments. Airlines may need to defer deliveries due to the tariffs.

The aviation industry is facing uncertainty as suppliers have the upper hand in negotiations. Howmet’s stance on the Trump tariffs could set a precedent for aircraft contracts. Inflation-adjustment clauses may not be sufficient to address the impact of tariffs. Maintenance and leasing companies are also analyzing the implications of the tariffs. The industry is seeking clarity amid the uncertainty.



Read more at Yahoo Finance: Aerospace firms scour contracts over tariffs after supplier challenge