In a world where international collaboration is key to building a modern aircraft, tariffs can send shockwaves through an already fragile aerospace supply chain.

As global economies recover from the impacts of the COVID-19 pandemic, the resurgence of trade barriers is raising new questions—especially for aerospace giants like Boeing. With the Trump administration imposing new rounds of tariffs, the cost of building airplanes in the U.S. is under fresh scrutiny.

Tariffs Hit a Fragile Aerospace Supply Chain

The aerospace industry operates on a finely tuned global supply chain, and Boeing is no exception. From Canadian landing gear to British engines and Chinese components, Boeing relies on parts sourced from all over the world. In fact, roughly 30% of the 2.3 million parts in a Boeing 787 Dreamliner are imported.

But the Trump administration’s latest wave of tariffs is threatening to upend nearly 50 years of mostly duty-free aerospace trade. These new duties—such as 25% on imports from Canada and Mexico, and 10% on Chinese goods—come at a time when the supply chain is still recovering from pandemic disruptions. Adding to the cost burden are tariffs on key materials like steel and aluminum, which are essential to aircraft production.

The Cost Impact: More Than Just Spare Change

The numbers are concerning. Even back in 2018, a Reuters estimate suggested that steel and aluminum tariffs alone could increase the cost of a Boeing 737 by around $200,000. With higher tariffs now in place, those costs could easily climb—possibly by millions per aircraft depending on the model and materials.

There are also geopolitical risks. Countries like China, a major Boeing customer, have already retaliated with tariffs of their own—imposing a 34% tax on U.S. aerospace imports. This raises the potential for Boeing jets to become more expensive or less appealing to foreign buyers, putting pressure on Boeing to either absorb costs (hurting profit margins) or pass them on to airlines.

Boeing’s Response: Downplaying the Pressure

Despite the risks, boeing strike leadership appears cautiously optimistic. In January 2025, CEO Kelly Ortberg said he’s “not too worried” about the tariffs, citing Boeing’s largely U.S.-based production and a backlog of locked-in supply contracts that could delay cost hikes. Still, CFO Brian West expressed concern just two months later about parts availability and growing supply chain stress.

Analysts suggest that while some short-term buffers are in place, prices are already trending up. The exact cost increase per aircraft will depend on how much Boeing chooses to absorb versus how much gets passed to buyers. A worst-case scenario projects spikes of up to $40 million per plane, though a more realistic estimate might be $1–2 million—still a noticeable jump from pre-tariff levels.

Tariffs Disrupt Decades of Trade Harmony
Since the 1980s, the aerospace sector has enjoyed largely tariff-free trade under longstanding international agreements. That stability is now being shaken. Trump’s blanket 10% tariffs on many countries—and higher duties for others like the EU—threaten long-standing partnerships in aerospace manufacturing.

And while the administration argues that “if you make your product in America, you won’t have to worry about tariffs,” that’s easier said than done. Aircraft manufacturing is inherently global. Even American-made planes like the Boeing 787 rely on specialized parts and technologies that simply aren’t available domestically.