Boeing hit hard as Trump’s tariffs threaten China deliveries and supply chain

Boeing hit hard as Trump’s tariffs threaten China deliveries and supply chain

Boeing is facing severe consequences from the global trade war sparked by President Trump’s tariff blitz, as Chinese authorities have directed domestic airlines to stop placing new orders and seek approval for already-ordered aircraft deliveries. This development is a significant blow to the US plane maker, whose long-standing, tariff-free status is rapidly unravelling amid a wave of retaliatory measures and shifting international alliances, the Wall Street Journal reported.

Despite efforts to resume business following the 737 MAX grounding, Boeing’s future in its most critical growth market—China—is now uncertain. The company has already delivered 18 planes to Chinese carriers this year, but with new regulatory hurdles and the imposition of a 10% tariff on jet imports, even existing deliveries could be delayed or cancelled to avoid additional costs.

A looming cash crunch and Airbus advantage

Boeing’s financial health remains fragile. After burning through $14 billion in cash last year, the company had aimed to be cash-flow positive by the end of this year. But analysts now warn that continued friction with China could lead to a $1.2 billion revenue hit in 2025 alone if Beijing halts deliveries. Boeing generated $67 billion in revenue last year.

In the long term, the trade war may help Boeing’s rival, Airbus, which has already gained ground in China and maintains two final assembly lines in the country. Meanwhile, Boeing lacks any manufacturing presence there, a gap that may further tilt preference among Chinese carriers toward Airbus aircraft.

Global demand softens as uncertainty mounts

While global airlines had been eager to purchase Boeing jets amid a post-pandemic travel boom, consumer sentiment is cooling. Rising travel costs and recession fears are already prompting booking cancellations. Ryanair, for instance, is reportedly considering delaying delivery of 25 Boeing 737s due in August.

At the same time, China’s homegrown rival, the Comac C919, is still years away from becoming a serious threat, having delivered just 13 aircraft last year and remaining heavily dependent on US components. Yet even with those limitations, the intensifying trade restrictions could give it space to grow.

Tariffs threaten supply chain, innovation and safety

The impact of the tariffs stretches beyond Boeing’s customer base. The company’s extensive supply chain—comprising thousands of mostly small and fragile suppliers—faces new uncertainty as key materials and parts are now subject to duties. Boeing CEO Kelly Ortberg has warned that these disruptions could erode the company’s ability to export and damage already strained supplier relationships.

The end of the aerospace industry’s decadeslong exemption from tariffs, first established in the 1980s, is now disrupting a fragile manufacturing ecosystem. “Nobody wants to be the one to pay the new costs,” said aerospace analyst Richard Aboulafia. “That’s a dangerous thing, because you could have the whole system freeze up.”

For now, Boeing’s huge backlog of 5,500 planes is providing a buffer. But with delivery delays stretching almost a decade and ongoing trade uncertainty, the long-term damage to its competitiveness—especially in China—may already be underway.