Bloomberg Talks GE CEO Larry Culp Talks Tariffs
Jun 2, 2025
Larry Culp, CEO of General Electric Co., shares his insights on navigating the turbulent waters of tariffs affecting the aerospace sector. He discusses the significant $500 million impact of current tariffs and advocates for a return to duty-free trade. The conversation also covers collaborative efforts among stakeholders within the airline industry to combat these economic challenges and the balance of trade policies impacting innovations in jet engine design, particularly in relation to national security and technology transfer to China.
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Tariff Impact on Costs
- GE Aerospace faces about a $500 million cost challenge from US tariffs.
- They mitigate with supply chain improvements and partial cost pass-throughs to customers.
Collaborate and Communicate Clearly
- Collaborate with airline and manufacturer partners to speak with one industry voice.
- Clearly communicate both mitigation and cost actions to customers to manage tariff impacts.
Strong Backlog Amid Supply Challenges
- Despite challenges, GE Aerospace is sold out with a $170 billion backlog through the decade.
- Operational improvements focus on resolving supply chain bottlenecks and expanding capacity.