GE Aerospace CEO Calp advocates a tariff-free administration for the aviation industry

Rajesh Kumar Singh

CHICAGO (Reuters) – GE Aerospace CEO Larry Culp said Tuesday that he advocated for a reestablishment of a tariff-free administration in the aerospace industry when he met with President Donald Trump under the 1979 Civil Aircraft Agreement.

In an interview with Reuters, Culp added that the company’s position was “understood” by the administration, and that the Zero Douty system has helped the US aerospace industry enjoy a trade surplus of $75 billion a year.

“I argued that it was good and good for the country,” Culp told Reuters.

Trump’s trade war has created the greatest uncertainty for the aerospace industry since the Covid pandemic. It also led to a breakdown of the industry’s decades-old tax-free status, with aircraft delivery being placed in scope.

Uncertainty has made some GE Aerospace customers struggling to accurately predict their business. Meanwhile, one of its well-known suppliers, Howmet Aerospace, warns that shipping could be suspended if tariffs are affected.

Culp said the company has not seen the disruption in delivery from Howmet. The Pittsburgh-based supplier is currently working on a new high-pressure turbine blade for the Leap 1A engine, produced by GE Aerospace, a joint venture with French Saffron SA.

“This lamp went so well this much in 2025,” he said.

GE Aerospace is tackling supply chain challenges, with engine delivery declining over the past year. Last week, Airbus said it faced a challenge in delivering engines as CFM is “slightly behind the curve.”

Culp said the company is “well aligned” with the needs of European planmakers this year, but added that tariffs have created supply chain risks.

Tariffs are estimated to cost more than $500 million aerospace this year. The company makes more use of foreign trade zones and available trade programs, including the shortcomings of its obligation to mitigate its impact. It also employs cost control and tariff surcharges to protect margins.

Trade-inducing economic uncertainty also strains travel needs. Softening travel spending increases the risk that airlines can begin postponing engine orders.

Culp said other airlines will intervene if other airlines decide to stop deliveries. “There are a lot of other people lined up and replace them,” he said.

(Reporting by Rajesh Kumar Singh, Editing by David Evans)