Trump Tariffs Pose Limited Risk to U.S. Aerospace Industry, Barclays Says

Aerospace stocks climbed on Wednesday as investors adjusted their portfolios following Donald Trump’s presidential election victory. Companies like GE Aerospace (NYSE: GE) and Honeywell International (NASDAQ: HON) saw gains, with expectations that Trump’s promises of lower corporate taxes and reduced regulation could boost the sector.

While Trump’s proposed import tariffs present some risk, Barclays analysts view it as minimal for aerospace compared to other industries. “We see higher tariffs as a potential risk for aerospace, but a relatively minor one compared to broader industrials,” said David Strauss, an analyst at Barclays, in a report released on November 7.

For Boeing (NYSE: BA), which has significant exports to China, the impact is expected to be limited. China now represents only 3% of Boeing’s backlog, down from 10% prior to the trade tensions under Trump’s previous term. As for GE Aerospace and RTX (NYSE: RTX), both provide parts for Comac’s C919 narrowbody aircraft, but this represents a small portion of their overall business, according to Barclays.

Overall, Barclays suggests that while Trump’s tariffs might affect some aerospace exports, the broader impact on the industry is expected to be limited, and potential tax cuts and deregulation could provide a net benefit to the sector.

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