GE Aerospace passes tariff costs to customers to offset $500 million trade burden

General Electric CEO Larry Culp said GE Aerospace is beginning to pass along some tariff-related costs to customers, while still pushing for a return to the duty-free trade conditions that have long supported the aviation industry, according to Bloomberg’s interview with him at the International Air Transport Association meeting in Rio de Janeiro.

In the conversation, Culp described tariffs imposed under President Donald Trump as creating a significant cost burden for GE Aerospace, which Bloomberg said is the world’s largest aircraft engine maker. He said the company has been using supply-chain changes and duty drawback options to reduce the impact, but that it still faces a residual cost challenge of about $500 million.

Culp’s remarks matter because aircraft engines and related aerospace equipment are part of a deeply global industry, with parts and customers spread across multiple countries. When tariffs raise costs, manufacturers can be squeezed between absorbing the expense themselves or raising prices for airlines and other buyers.

Bloomberg also said Culp discussed GE Aerospace’s strengths so far this year, the effect of airline behavior on the business, and how the company’s recent corporate restructuring has changed its evolution. Those comments suggest GE is trying to balance short-term trade pressures with a longer-term effort to streamline its operations and strengthen its position in aerospace.

The interview comes as airline and aerospace executives have been gathering in Rio for the IATA meeting, where industry leaders are weighing issues including supply chains, fleet demand, and the cost environment. Culp’s comments indicate that tariff policy remains a live concern for manufacturers even as the sector continues to recover and adapt after years of disruption.