Howmet Aerospace, a critical supplier of parts for aircraft built by Airbus and Boeing, has warned it may halt some shipments if impacted by the new tariffs imposed by U.S. President Donald Trump, according to a letter seen by Reuters.
The Pittsburgh-based company informed its customers that it has declared a force majeure event in response to the tariffs, a legal provision that allows a company to avoid its contractual obligations in the face of unavoidable external circumstances. In the letter, Howmet stated, "Howmet will be excused from supplying any products or services that are impacted by this declared national emergency and/or the tariff executive order."
Howmet declined to provide further comment on the letter. The company is a key supplier of critical metal components in the $150 billion jetliner industry, and its decision could have significant ripple effects throughout the aerospace supply chain. Boeing and Airbus did not immediately respond to requests for comment on the situation.
The letter, sent to multiple aerospace firms, marks one of the first instances of a major aerospace company invoking force majeure in response to the tariffs. However, the legal declaration does not automatically disrupt or halt shipments, but instead opens the door for Howmet to claim that it is unable to fulfill its contractual obligations due to the tariffs.
The letter also suggests room for negotiations on sharing the burden of the tariffs, with Howmet expressing its willingness to work with customers "including discussing your interest in alleviating the impact of the Tariff Executive Order on Howmet."
The move comes amid growing concerns about the impact of U.S. tariffs on imported aluminum, steel, and other materials, which are putting pressure on aerospace companies already facing rising costs. The new tariffs, which range from 10% to 50%, were announced by Trump on Wednesday, escalating tensions over trade imbalances and sparking fears of a potential recession.
Sources indicate that if Howmet's force majeure declaration is successful, it could set a precedent for other companies in the aerospace sector to seek relief from the costs imposed by the tariffs, potentially disrupting the entire supply chain.
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