Trump Tariffs Could Derail Boeing’s Recovery Despite Production Gains

Boeing is showing signs of a long-awaited turnaround, but new Trump-imposed tariffs on steel and aluminum could pose a major setback for the embattled aerospace giant.

Last week, Boeing reported its best production levels in two years, delivering 44 aircraft in February, up from 27 a year ago. Despite a $3.86 billion Q4 loss, its stock jumped 6% as optimism grew over the company’s recovery. However, President Donald Trump’s 25% tariffs on imported steel and aluminum could significantly increase production costs for Boeing, which already relies on 700 suppliers worldwide.

Boeing has struggled through years of scandals, including the fatal 737 MAX crashes, a mid-air door plug failure, and quality control issues flagged by the FAA. The company has also faced whistleblower allegations and a seven-week machinist strike in 2024 that led to billion-dollar losses.

Industry experts warn the new tariffs could severely impact Boeing’s competitiveness. AerCap CEO Aengus Kelly cautioned that retaliatory tariffs from Europe could add $40 million to the cost of a Boeing 787, making it less attractive to buyers. Analysts suggest this could allow Airbus to dominate 75-80% of the global market.

With Boeing already struggling financially, the tariffs threaten its fragile recovery at a time when the company is working to rebuild trust and improve production efficiency.

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