Demand impact from Trump tariffs 'unknowable' for US aerospace and defence sector - TD Cowen

Trump tariffs are likely to hurt US Aerospace and Defense sector by increasing costs and disrupting supply chains, with most demand impacts remaining "unknowable", says TD Cowen

Despite these challenges, defense stocks like Boeing BA.N , RTX RTX.N , and Howmet Aerospace HWM.N are favored for their unique strengths and oversold values

BA down 2.4%, while HWM and RTX slip 4% and ~1%, respectively, in premarket trading

"We expect non-US defense demand to remain a growth vector for many years" - TD Cowen

In a separate note, Citigroup, however, believes US aerospace industry will be insulated due to strong order books and airlines managing capacity through retirements rather than cancellations

BA and RTX are set to report quarterly results on April 23 and April 22, respectively

YTD, S&P 500 Aerospace & Defense .SPLRCAERO up 4%