Mike Stone and Utkarsh Shetti
Washington (Reuters) -US defense contractors said that in 2025, they are mainly forecasting and are too early to understand the impact of US President Donald Trump’s tariffs.
Lockheed Martin, the largest defense company, reaffirmed this year’s predictions on Tuesday due to the flexible demand for missile systems and fighter jets. Similarly, Northrop Grumman has a narrow profit margin, but the sales forecasts are adhered to, indicating trust in trade tension.
North Rob’s CEO, Kathy Warden, said, “At this point, we do not see significant risks for companies related to trade policies we can understand today.” “We will monitor this closely, especially we are taking measures to explain the risks we can see and especially to relieve the availability of the specific components needed to deliver it to the program.”
The RTX CORP, previously known as RayTheon Technologies, ranked in the rankings by expressing concerns about $ 880 million due to a reduction in new charges for metals and China. This difference emphasizes the various impacts of trade policy in the defense and commercial aerospace sector.
RTX has a large commercial aerospace business that creates jet interiors and engines.
Like other sectors with complex manufacturing operations, the defense industry is having trouble with the potential influence of the global trade war. This situation has put pressure on the supply chain that has already been tense, forcing the company to re -evaluate strategy and cost structure.
Despite these challenges, this sector continues to benefit from the rapid increase in demand for world weapons due to the Ukrainian Russian War and the Middle East. This increased demand has helped to offset some of the uncertainty caused by trade disputes. However, RTX’s concerns are not affected by trade pressure and emphasizes complex interactions between defense spending, international relations and economic policies.
The higher the US defense budget proposed by the Secretary of Defense, PETE HEGSETH on April 7, will benefit the contractor’s profits and provide some stability and growth in uncertain economic outlook.
Trump’s review of military equipment export rules, which aims to reduce restrictions, can increase profits to US contractors. However, this occurs because some allies, including the Canadian and the European Union, are relying on US defense equipment due to trade tension and designated alliance.
