Archive · 9 Jun 2025
Aerospace Industry Faces Supply Chain, Tariff Challenges
Imagine the airplane industry is like a giant Lego set.
Companies want to build more planes (the Lego sets), but they're having trouble getting all the pieces (parts).
The companies that make these parts, like engines and seats, are dealing with their own problems.
The whole industry is also dealing with new tariffs, which make the pieces more expensive.
This might cause airplanes to be delayed or cost more.
However, the industry is trying to improve.
Boeing, for example, is working to improve how it builds airplanes.
The industry hopes to overcome these issues and keep building more planes.
The aerospace industry is recovering from supply chain issues exacerbated by the pandemic.
New tariffs on steel, aluminum, and other materials threaten to increase costs.
The US aerospace industry, which runs a trade surplus, is caught in trade disputes.
Engine shortages and production issues are delaying aircraft deliveries.
Boeing is working to revamp its manufacturing and regain its leading position.
- Who
- Aerospace industry, Boeing, Airbus, and suppliers.
- What
- The aerospace industry is recovering from supply chain issues, but faces new challenges including tariffs and material scarcity.
- When
- The industry faces current challenges and future developments.
- Where
- Global aerospace industry.
- Why
- To meet increasing demand for aircraft, though hampered by supply chain bottlenecks and trade policies.
Trade Policies
Aerospace Industry Concerns
Tariffs on Materials
Trade Policies
Suppliers are complaining about tariffs driving up costs, some even threatening to stop deliveries.
Aerospace Industry Concerns
The US government is considering tariffs on commercial aircraft and parts, potentially increasing costs.
- Main Players
- Airbus SE, Boeing Co., GE Aerospace, Safran SA
- Trade Surplus
- US aerospace industry has an annual trade surplus of about $75 billion
- Critical Materials
- Graphite, cobalt, titanium, etc., potentially affected by trade policies.
- Engine Makers
- CFM International, Pratt & Whitney
- Boeing Deliveries (2023)
- 348 aircraft
- Airbus Deliveries (2023)
- 766 aircraft