Tariff headlines are back in focus, but this time commercial aircraft, engines, and components sit on the sidelines of new US measures, which keeps global supply chains open for key aerospace stocks. That policy twist has implications for companies like Boeing and Airbus, as well as the suppliers that keep their production lines moving. For investors watching trade policy risk and supply chain resilience, this screener highlights stocks most exposed to the latest news. Below, you will find 3 stocks from the list that appear positively positioned under the current tariff approach.

Embraer (BOVESPA:EMBJ3)

Overview: Embraer is a Brazilian aerospace group that designs, builds, and sells commercial jets, business jets, military aircraft, and related systems, while also providing aircraft leasing, training, and engineering services worldwide. Its operations span passenger airlines, corporate aviation, defense customers, and a growing portfolio of service and support activities.

Operations: Embraer generates most of its revenue from Commercial Aviation (R$13.4b), Executive Aviation (R$12.5b), and Services & Support (R$10.8b), with smaller contributions from Defense and Security (R$5.8b) and Other activities (R$0.5b), and sells into North America (R$25.4b), Europe (R$10.6b), and Brazil (R$3.5b) as key markets.

Market Cap: R$60.2b

Embraer stands out in the current tariff backdrop because its aircraft, engines, and parts are now exempt from new US tariffs. This removes a cost overhang that previously affected it more than some peers and supports access to a large customer base. The company combines sizeable commercial and business jet backlogs, expanding defense contracts such as the UAE’s C-390 order, and high margin Services & Support revenue. However, investors still need to weigh one off charges, earnings volatility, and a funding structure reliant on external borrowing. With a P/E below the wider Aerospace & Defense peer group, solid governance, and fresh certification and order wins in markets like India, the key question is how all of this stacks up against the current share price and growth expectations.

Embraer’s mix of commercial and business jet backlogs, combined with high margin services, often gets overshadowed by headline risks. To evaluate this more thoroughly, stress test that story against the 2 key rewards and 3 important warning signs

General Electric (GE)

Overview: General Electric, now focused as GE Aerospace, designs and manufactures jet engines and aircraft systems for commercial airlines, business aviation, and defense customers, and also services those engines over their life through maintenance, repair, and overhaul work. Its products power a large share of the global fleet and are sold under brands such as Avio Aero, Unison, Dowty Propellers, and Colibrium Additive across both civil and military aviation.

Operations: GE Aerospace generates most of its revenue from Commercial Engines & Services at US$35.6b, with Defense & Propulsion Technologies contributing US$11.1b and Corporate & Other US$1.7b.

Market Cap: US$374.6b

General Electric stands out in this tariff reprieve because its global engine supply chain avoids an immediate cost shock just as orders and backlog are already strong, with Q1 orders reportedly up 87% to US$23b and commercial services backlog above US$140b. At the same time, investors need to weigh high leverage and a rich P/E against the attractions of 24.2% recent earnings growth, 43.2% 5 year earnings growth, and a 46.9% ROE that benefits from debt but also points to efficient use of capital. Adding rising defense and propulsion demand, repair automation, and a large installed base of engines waiting for shop visits raises the key question of how much trade policy relief is already reflected in General Electric’s valuation and risk profile.

GE Aerospace’s earnings growth, high ROE, and tariff relief paint a strong picture, but the real story lies in how the market is pricing that mix of momentum and balance sheet risk. This is unpacked in the analysis report for General Electric

Airbus (ENXTPA:AIR)

Overview: Airbus is a European aerospace group that designs, builds, and supports commercial passenger and cargo aircraft, helicopters, and a wide range of military and space systems, including satellites and secure communications. Its business spans civil aviation, defense, and space services for airlines, governments, and commercial customers worldwide.

Operations: Airbus generates most of its revenue from its Airbus segment at €51.5b, with Airbus Defence and Space contributing €13.6b and Airbus Helicopters €9.0b, partly offset by €1.5b of eliminations.

Market Cap: €155.3b

Airbus sits at the center of global aviation, with a large commercial backlog, exposure to recovering travel in regions such as the Middle East, and growing interest in models such as the A321XLR and A220. The company is also moving into hydrogen propulsion and sustainable aviation fuel projects. The recent exclusion of aircraft and engines from new US tariffs removes a potential cost shock just as deliveries are progressing and airlines in Europe, China, and other regions are placing new long term orders. However, engine supply issues, strikes such as the Getafe action, and reliance on external borrowing keep execution and balance sheet risk in focus. For investors, an important consideration is how that mix of growth, valuation potential, and operational friction compares with what may already be reflected in Airbus’s valuation today.

Airbus appears to have momentum, supported by a large order book and rising interest in new aircraft. However, the real swing factor may be what current expectations overlook about future demand and constraints in the analyst forecasts for Airbus

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.