1359 GMT - Europe's commercial aerospace groups are more vulnerable to the new U.S. tariffs than defense companies because of their complex global supply chains, Quilter Cheviot analyst Matt Dorset says. In addition, Airbus has a substantial part of its order backlog from U.S. airlines, he says. The aircraft maker may shoulder some of the extra costs but it will largely pass them onto airlines, Dorset adds. Meanwhile, Europe's largest arms exporters to the U.S., such as BAE Systems, have production plants there. This insulates defense groups from the tariff threat, he adds. Airbus shares are down 2.65% at 158.36 euros, while BAE Systems is up 3.4% at 16.25 pounds. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
April 03, 2025 10:00 ET (14:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.