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Home»Economic News»Safran warns of Trump tariff hit to aerospace sector
Economic News

Safran warns of Trump tariff hit to aerospace sector

December 5, 2024No Comments1 Min Read
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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Safran cautioned that a potential rift between the US and China could have negative repercussions on the global aerospace market. This warning led to a 5% drop in shares of the French jet engine manufacturer due to underwhelming mid-range targets.

CEO Olivier Andriès emphasized the importance of maintaining strong relations with China, as it represents a significant portion of the global aeronautics market. He highlighted the impact a US-China trade war could have on major players like Airbus and Boeing, as well as the overall aerospace sector.

Furthermore, Andriès expressed concerns about the political and economic uncertainty in France affecting the defense sector. This uncertainty follows recent developments in the country’s budget plans and leadership changes.

Despite facing challenges, Safran remains optimistic about future growth opportunities, particularly in the defense and civil aviation sectors. The company’s strategic outlook includes revenue growth projections and a focus on key engine products.

Overall, Safran’s financial targets for the coming years reflect a cautious approach, but the company remains confident in its ability to navigate market challenges and capitalize on emerging opportunities.

aerospace Hit Safran Sector tariff Trump warns
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