[The Global Times特约记者 晨欣] According to a report on the Financial Times of the UK on the 23rd, American aerospace and defense manufacturers have warned that costs will continue to rise as the turmoil triggered by President Trump's trade conflicts continues to disrupt global supply chains.

CEO Larry Culp of General Electric told analysts during the earnings conference call on the 22nd that despite the company reiterating its full-year profit forecast, this jet engine manufacturer still plans to rely on price increases and other measures to reduce the impact of tariffs on its business.

Culp said that the industry enjoys a trade surplus of $75 billion, mainly thanks to the zero-tariff system in the United States since 1979. GE suggests that the government "consider the strong position enjoyed by the country due to the zero-tariff system and consider restoring this status".

Due to maintaining the full-year profit forecast, GE's stock price rose by 4.8% on the 22nd. By contrast, the stock price of another American defense manufacturer Raytheon Technologies fell by 8.5% on the same day. The Financial Times reported that the company had previously warned that if the tariffs on steel and aluminum imports and goods from China, Canada, and Mexico imposed by Trump continue until the end of this year, the company may suffer an $850 million loss. Another defense manufacturer Northrop Grumman's stock fell by 13% on the 22nd, marking the largest intraday drop since March 2020. Reuters reported on the 22nd that the company's first-quarter profits fell by 49% due to losses caused by rising manufacturing costs for its B-21 stealth bomber project.

Reuters' analysis on the 22nd stated that like other industries with complex manufacturing operations, American defense contractors are preparing to cope with the impact of trade conflicts, which are putting additional pressure on already tense supply chains. Although some experts believe that increasing defense budgets will help handle backlogs and increase revenue, countries dissatisfied with high tariffs and changing policies are considering abandoning American weapons and focusing on developing their own capabilities.

Source: The Global Times

Original article: https://www.toutiao.com/article/7497035237650711052/

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