Howmet Aerospace (HWM.N), one of the key suppliers to the global aviation industry, has declared force majeure due to new tariffs announced by U.S. President Donald Trump. In a statement to Reuters, Howmet indicated that deliveries to major manufacturers such as Airbus (AIR.PA) and Boeing (BA.N) could be disrupted.
What Does Force Majeure Mean?
“Force majeure” refers to a legal protection that comes into play when a company is unable to fulfill its obligations due to extraordinary circumstances beyond its control. In Howmet’s statement, “national emergency” and “tariff enforcement order” were cited as the main reasons for invoking this clause.
Although the notification does not automatically mean that shipments will stop, it does legally grant Howmet the right to waive its contractual obligations.
First Major Impact of the Tariffs
According to industry sources, this development marks the first concrete step taken by a supplier following the announcement of the tariffs. It reflects the tendency of companies to pass potential cost increases in the supply chain onto their customers.
Howmet’s statement also noted that it is open to negotiations with customers on cost-sharing, thus igniting a new period of uncertainty in commercial relations.
A Critical Supplier
Pittsburgh-based Howmet is a major supplier of high-precision metal components used in the $150 billion global jetliner market. Specializing in essential parts such as engine components, landing gear, and wing elements, the company plays a key role in the assembly lines of both Airbus and Boeing.
Ripple Effects and Risks
A successful force majeure declaration could trigger a ripple effect. Rising costs may prompt other suppliers to take similar actions, potentially leading to longer delivery times, disrupted production schedules, and increased cost pressures.
Trump’s Tariffs: Emphasis on National Emergency
On Wednesday, President Trump announced new tariffs ranging from 10% to 50%, declaring trade deficits a “national emergency.” This declaration could provide a legal basis for invoking the force majeure defense.
