Aerospace giant Melrose says US tariffs creating ‘complexity' for industry
The company, which makes engine parts for aircraft and provides a range of technology for flights, said it is closely monitoring the situation.
Chief executive Peter Dilnot said: 'The recent introduction of tariffs has created additional complexity across the aerospace industry.'
Earlier this month, US President Donald Trump introduced sweeping new levies on US imports, at varying rates for different countries and goods being supplied.
This included a 25% charge on aluminium and steel imports – materials which are typically used for components that make up aircraft structures and engines.
Boeing, a US-based aeroplane manufacturer, recently said its customers in China have indicated they will not take deliveries, in a sign of the escalating trade conflict between the two countries.
But Melrose told shareholders it has managed to take a number of measures to mitigate the impact of tariffs – specifically relating to products being exported to the US and supplied to its manufacturing sites.
These measures include adjusting its supply chain, negotiating with customers and suppliers, and the use of 'drawback', which involves reclaiming taxes on imported goods that are later exported.
'We have acted swiftly to evaluate potential effects on the group and have a path to successfully mitigate our identified direct exposure at current tariff levels,' Mr Dilnot said.
'The situation remains fluid, and we will continue to work closely with our customers and suppliers to respond as needed.'
The company still expects to report an adjusted operating profit of £700 million for 2025 – although this guidance does not include the impact of tariffs.
Revenues are forecast to come in between £3.55 billion and £3.7 billion.
Melrose added that demand within both its civil and defence markets remains strong.
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