financetom
Business
financetom
/
Business
/
Aircraft supplier Howmet may halt orders if hit by Trump tariffs, letter says
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Aircraft supplier Howmet may halt orders if hit by Trump tariffs, letter says
Apr 6, 2025 10:15 PM

(Reuters) -Howmet Aerospace ( HWM ), which supplies parts for planes built by Airbus and Boeing ( BA ), may halt some shipments if they are impacted by tariffs announced by U.S. President Donald Trump, according to a letter seen by Reuters.

Pittsburgh-based Howmet said in the letter to customers that it has declared a force majeure event, a legal practice that allows parties to a contract to avoid their obligations if hit by unavoidable and unpredictable external circumstances.

"Howmet will be excused from supplying any products or services that are impacted by this declared national emergency and/or the tariff executive order," Howmet wrote in the letter.

Howmet declined to comment.

Howmet is a supplier of critical metal components used across the $150 billion jetliner industry.

Boeing ( BA ) and Airbus did not immediately reply to requests for comment on the letter, which three industry sources said went to multiple firms across the aerospace sector.

It appeared to be the first such maneuver by a major aerospace company since the tariff announcement, one of the sources said.

Howmet's rare legal declaration does not mean that supplies will automatically be halted or disrupted but opens the door to the supplier potentially claiming it cannot meet its contracts if impacted by the emergency order.

The letter left room for negotiations over sharing the cost of tariffs, saying Howmet would work with customers "including discussing your interest in alleviating the impact of the Tariff Executive Order on Howmet."

The three industry sources said any successful declaration of force majeure could ripple through the supply chain as companies attempt to pass on the burden.

The move is the latest wrinkle in a hard-hit aerospace supply chain where some companies now face higher costs due to U.S. tariffs on imported aluminum and steel along with fresh duties expected to hit imports from other countries.

On Wednesday, Trump cited trade deficits as a national emergency when he announced tariffs with rates ranging from 10% to around 50%, escalating a dispute that has rattled investors and fed fears of a coming recession.

Aerospace companies typically contest such maneuvers, two of the sources said, adding that the success of Howmet's move would hinge on the degree to which the tariffs were unpredictable, given that Trump had referred to them in his election campaign last year.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Berkshire has record profit, cash soars to $189 bln as Apple stake sinks
Berkshire has record profit, cash soars to $189 bln as Apple stake sinks
May 4, 2024
OMAHA, Neb., May 4 (Reuters) - Berkshire Hathaway Inc ( BRK/A ) posted a record quarterly profit on Saturday, boosted by strength in its insurance operations, and appears to have sold a significant number of Apple ( AAPL ) shares as its cash stake swelled to $189 billion. The size of Berkshire's stake in Apple ( AAPL ) stake fell...
Berkshire has record profit, cash soars to $189 billion as Apple stake sinks
Berkshire has record profit, cash soars to $189 billion as Apple stake sinks
May 4, 2024
OMAHA, Neb. (Reuters) - Berkshire Hathaway Inc ( BRK/A ) posted a record quarterly profit on Saturday, boosted by strength in its insurance operations, and appears to have sold a significant number of Apple ( AAPL ) shares as its cash stake swelled to $189 billion. The size of Berkshire's stake in Apple ( AAPL ) stake fell 22% to...
Berkshire posts record operating profit, net declines
Berkshire posts record operating profit, net declines
May 4, 2024
OMAHA, Neb., May 4 (Reuters) - Warren Buffett's Berkshire Hathaway Inc ( BRK/A ) posted a record quarterly profit on Saturday, bolstered by a significant increase in income from insurance underwriting. Berkshire said net income fell 64%, reflecting much lower unrealized gains from its common stock holdings as the share price of Apple ( AAPL ) declined. It also repurchased...
French cosmetics sector eyes Xi visit for reprieve on Chinese import rules
French cosmetics sector eyes Xi visit for reprieve on Chinese import rules
May 4, 2024
By Mimosa Spencer PARIS, May 3 (Reuters) - France's world-leading cosmetics sector is counting on talks between Xi Jinping and Emmanuel Macron next week to help minimize the impact on French companies of tough new Chinese import rules requiring the sharing of formulas and manufacturing know-how. President Xi's first visit to Europe in five years comes amid a backdrop of...
Copyright 2023-2026 - www.financetom.com All Rights Reserved