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.
Germany edged out of recession with 0.2 % growth in the first quarter, but the recovery looked shaky as unemployment climbed to its highest level since the pandemic and looming U.S. tariffs threatened to stall momentum.
South Africa’s 2024/25 maize harvest is now forecast at 14.66 million tonnes, up 14 % from last season and slightly above March’s estimate, the Crop Estimates Committee said in its latest outlook.
U.S. Treasury primary dealers want Congress to scrap the federal debt ceiling, warning in new TBAC minutes that the limit lifts borrowing costs, fuels market turmoil and could weaken the dollar’s reserve-currency standing.
Canada’s economy contracted 0.2 % in February, its first monthly decline since November, as slumps in mining, oil and gas extraction, and construction dragged overall output lower, Statistics Canada said.
Romanians vote Sunday in a rerun presidential election with far-right eurosceptic George Simion leading the polls, a potential upset that could unsettle markets and raise alarms in the EU and NATO.
Germany edged out of recession with 0.2 % growth in the first quarter, but the recovery looked shaky as unemployment climbed to its highest level since the pandemic and looming U.S. tariffs threatened to stall momentum.
South Africa’s 2024/25 maize harvest is now forecast at 14.66 million tonnes, up 14 % from last season and slightly above March’s estimate, the Crop Estimates Committee said in its latest outlook.
An explosion rocked a residential area in Taiyuan, Shanxi province, northern China, killing at least one person and injuring 21 others, according to state media.
U.S. Treasury primary dealers want Congress to scrap the federal debt ceiling, warning in new TBAC minutes that the limit lifts borrowing costs, fuels market turmoil and could weaken the dollar’s reserve-currency standing.
Russia and North Korea on Wednesday launched construction of a road bridge between the two countries that will span the Tumen river, marking strategic partnership between the two countries, Russia's prime minister said.
Russia launched a major missile and drone assault on Kyiv overnight on April 24, killing at least twelve people and injuring 90, including children and a pregnant woman, according to Mayor Vitali Klitschko.
In an expansive interview marking his first 100 days back in office, President Donald Trump sketched out an agenda that touches everything from punitive tariffs and China policy to cease-fire hopes in Ukraine and an overhaul of domestic programmes. Below are the highlights.
A deadly explosion at Iran’s Bandar Abbas port has left at least 40 dead, with more than 1,200 people injured, state media reported on Sunday, halting operations at one of the country’s most vital trade hubs.
For three generations, the Liebigs built railcars in Görlitz. Now, the factory that shaped their lives will produce parts for battle tanks.
North Korea has launched a new 5,000-tonne destroyer as part of Kim Jong Un’s plans to expand the country’s naval power far beyond its coastal waters.
China has lifted sanctions on five current and former Members of the European Parliament, signaling a move to ease tensions with the European Union and revive stalled trade negotiations.
U.S. President Donald Trump on Wednesday urged Americans to remain patient following a first-quarter economic contraction, insisting the downturn was not caused by his tariff policies.
Lars Klingbeil, Germany’s incoming finance minister, is set to reshape fiscal policy with a sharp focus on defense spending, marking a shift from austerity as Berlin boosts military investment amid global tensions.
Iran has announced plans to significantly expand its economic relationship with Afghanistan, targeting $10 billion in bilateral trade, as regional powers ramp up efforts to turn Afghanistan into a strategic trade and transit hub.
Germany edged out of recession with 0.2 % growth in the first quarter, but the recovery looked shaky as unemployment climbed to its highest level since the pandemic and looming U.S. tariffs threatened to stall momentum.
Germany edged out of recession with 0.2 % growth in the first quarter, but the recovery looked shaky as unemployment climbed to its highest level since the pandemic and looming U.S. tariffs threatened to stall momentum.
South Africa’s 2024/25 maize harvest is now forecast at 14.66 million tonnes, up 14 % from last season and slightly above March’s estimate, the Crop Estimates Committee said in its latest outlook.
An explosion rocked a residential area in Taiyuan, Shanxi province, northern China, killing at least one person and injuring 21 others, according to state media.
U.S. Treasury primary dealers want Congress to scrap the federal debt ceiling, warning in new TBAC minutes that the limit lifts borrowing costs, fuels market turmoil and could weaken the dollar’s reserve-currency standing.
Russia and North Korea on Wednesday launched construction of a road bridge between the two countries that will span the Tumen river, marking strategic partnership between the two countries, Russia's prime minister said.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment