Aerospace Industry on Edge Amid Proposed US Tariffs

Optima Aero, a Canadian helicopter parts supplier, is moving inventory to the U.S. to minimize risks from potential tariffs proposed by President Trump. The aerospace sector faces challenges, with potential tariffs threatening higher costs and urging companies to seek contingency measures and tariff exemptions.

Optima Aero, a leading Canadian helicopter parts supplier, is actively relocating its inventory to the United States to mitigate risks associated with potential tariffs proposed by U.S. President Donald Trump. The company, which is headquartered in Quebec, exports approximately $2 million worth of parts each year to Texas to support maintenance services for local law enforcement and U.S. border protection.

Company President Tony Gault has expressed concerns over the impact of a proposed 25% duty on imports from Canada starting February 1, which could affect 6% of Optima's $32 million annual revenue. To counter these challenges, aerospace suppliers are rapidly adjusting strategies like stockpiling materials and seeking tariff exemptions, as explained by GE Aerospace CEO Larry Culp.

The aerospace industry, a complex network of global suppliers, faces potential disruptions if tariffs are enforced. Canada, a top import and third-largest export nation for U.S. aerospace goods, could also retaliate with tariffs. Industry analysts doubt comprehensive tariffs will be imposed due to economic consequences, but acknowledge the sector's vulnerability.

(With inputs from agencies.)