Howmet Aerospace Declares Force Majeure Amid Tariff Turbulence

Howmet Aerospace, a supplier to Airbus and Boeing, has declared a force majeure due to tariffs. This legal move allows contract renegotiations amid new U.S. tariffs impacting the aerospace industry. The tariffs and potential supply chain disruptions could amplify industry challenges, affecting costs and obligations.

Pittsburgh-based Howmet Aerospace, a supplier of parts to major aeronautical manufacturers Boeing and Airbus, has announced the invocation of force majeure following recent tariff declarations by U.S. President Donald Trump. This strategic legal move, detailed in a customer letter, allows Howmet to renegotiate its contractual obligations should the tariffs render them untenable.

The aerospace industry, still grappling with the news, received the communiqué with mixed reactions, as it marks the first such response from a significant industry player to Trump's freshly announced trade tariffs. Boeing and Airbus have yet to formally comment on the situation, which may ripple across supply chains and affect cost structures.

President Trump's pronouncement of trade activity as a national emergency, with tariffs spanning 10% to 50%, has agitated market sentiments and raised fears of potential recessionary impacts. Industry watchers believe Howmet's move might set a precedent for other companies to follow, adjusting to the heightened tariff landscape.

(With inputs from agencies.)