Trump’s tariffs threaten Boeing and entire aerospace industry
Boeing 777X in flight (Illustrative photo: Getty Images)
The upcoming trade duties on raw materials and components could seriously impact Boeing’s suppliers and the entire aerospace supply chain, The New York Times reports.
President Donald Trump plans to introduce new tariffs affecting key materials for the aviation industry, including steel and aluminum. While Boeing and other major manufacturers may be able to absorb some of the costs, their suppliers will face significant challenges.
"These tariffs are particularly risky for the aerospace industry, which has operated duty-free for decades," said Bruce Hirsh, a trade policy expert. According to IBISWorld, the aviation sector is expected to export approximately $125 billion worth of goods this year, but new trade barriers could put this figure at risk.
Supply chains under threat
The biggest blow is expected to come not from metal tariffs but from new duties on goods from Canada and Mexico, set to take effect next month. These could destabilize the highly integrated North American supply chain that aircraft production relies on.
"What really concerns us is the availability of parts because this is a broad and complex supply chain, and companies have different levels of exposure," said Boeing’s Chief Financial Officer Brian West.
According to AeroDynamic Advisory, these measures could increase costs for the aerospace industry by $5 billion annually, worsening existing shortages of materials and skilled labor. With fierce global competition, the aviation market may struggle to withstand such disruptions, forcing companies to freeze investments and face long-term uncertainty.
These tariffs are part of Trump’s broader trade policy, which recently saw import duties on Canadian steel and aluminum rise to 50%, escalating a trade war between the two countries.
A recent Reuters/Ipsos poll found that most Americans view his economic decisions as too erratic and unpredictable.
