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What Trump election means for Boeing and US Aerospace

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With Donald Trump now the President-Elect, what will a Trump administration mean for Boeing and the rest of the aerospace industry?   The answer centers around tariffs, renewed trade wars that could threaten international sales for Boeing, and arms exports from the US aerospace industry.  They would also make parts from Boeing’s global supply chain more expensive, as significant portions of aircraft, including fuselages from Japan and Italy, wing components from Japan and South Korea, and landing gear and engines from the UK.  Those parts would be subject to the 10-20% tariffs, alongside a 60% tariff for the rudders made in China.  The diagram for the 787, shown below, tells only one piece of the puzzle.

Boeing 787 parts chart
Boeing

 

Trump has campaigned on promises to enact sweeping tariffs on imports that could ignite trade wars far worse than those in his first administration.  He has proposed across-the-board tariffs of 10% to 20% on every country that trades with the United States. Such tariffs would likely be matched on US exports. That could deleterious impact on the sale of Boeing aircraft, particularly to China, where he proposed a 60% tariff.  Retaliatory tariffs against US-manufactured aircraft by China would preclude Boeing

from effectively competing in what will soon become the world’s largest commercial aircraft market.  

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