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RTX warns of potential $850M hit from tariffs as defense companies grapple with fallout of rising costs

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"It's not a panacea for all things tariff," RTX CEO Christopher Calio told investors Tuesday.
RTX Corp., formerly known as Raytheon Technologies, reported a significant profit hit of up to $850 million due to new U.S. tariffs on Chinese goods, as announced in their recent earnings report. The company, which supplies the U.S. military and its allies, stated that these tariffs would increase its costs, particularly affecting its Pratt & Whitney and Collins Aerospace divisions. RTX also warned that the tariffs could lead to higher prices for its products and potentially disrupt its supply chain. In related news, Northrop Grumman, another major defense contractor, reported that it is facing increased manufacturing costs, which it attributes to ongoing supply chain issues and inflation. Both companies' statements highlight the broader impact of economic policies and global supply chain challenges on the defense industry.

Read the Full Fortune Article at:
[ https://fortune.com/article/rtx-earnings-warns-tariffs-850-million-profitl-hit-northrop-grumman-manufacturing-costs/ ]