**Pittsburgh**: Howmet Aerospace announces a force majeure event in response to U.S. tariffs, potentially impacting shipments to customers. The declaration aims to navigate financial burdens imposed by new tariffs on aluminium and steel, marking a significant response in the aerospace sector amidst growing economic concerns.
Howmet Aerospace, a leading supplier of components for aircraft manufacturers Airbus and Boeing, has declared a force majeure event in response to the tariffs implemented by U.S. President Donald Trump. This declaration, detailed in a letter obtained by Reuters, indicates that Howmet may halt some of its shipments if they are affected by the tariffs.
The letter to customers states, “Howmet will be excused from supplying any products or services that are impacted by this declared national emergency and/or the tariff executive order.” This legal term allows companies to avoid contractual obligations due to unavoidable external circumstances. Howmet has refrained from making any official comments regarding the situation.
With its headquarters in Pittsburgh, Howmet provides critical metal components widely used in the $150 billion jetliner industry. The letter reportedly went to several firms across the aerospace sector, marking what sources are suggesting as the first move of its kind by a major player in the aerospace field since the tariff announcement.
While the declaration of force majeure does not automatically disrupt supplies, it positions Howmet to assert that it cannot fulfill its contracts if affected by the president’s emergency order. Furthermore, the letter outlines an openness to negotiations about sharing the financial burdens created by the tariffs, emphasising Howmet’s willingness to collaborate with customers “including discussing your interest in alleviating the impact of the Tariff Executive Order on Howmet.”
This situation comes amid a turbulent period for the aerospace supply chain, where companies are grappling with increased costs due to U.S. tariffs on imported aluminium and steel, with additional duties anticipated for imports from other nations. On Wednesday, President Trump announced tariffs ranging from 10% to approximately 50%, citing trade deficits as a national emergency. This decision has heightened concerns among investors and contributed to fears of an impending recession.
Industry sources noted that such declarations of force majeure are typically contested within the aerospace sector. The success of Howmet’s strategy will likely depend on the perception of the tariffs as unpredictable, despite President Trump having referenced the potential for tariffs during his election campaign last year.
As the details surrounding Howmet’s force majeure declaration continue to unfold, its implications could prompt significant changes throughout the aerospace supply chain, as companies could seek to mitigate the financial impact in response to the tariff developments.
Source: Noah Wire Services
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