Aviation Week's Check 6 Podcast

What Tariffs Mean For Boeing, Airbus And Comac

8 snips
Apr 17, 2025
In this discussion, Wall Street analyst Scott Mikus offers insights into how rising trade tensions impact aerospace giants Boeing, Airbus, and COMAC. Jens Flottau highlights the critical repercussions for production and supply chains as tariffs reshape demand, especially in relation to China. Michael Bruno dives into the complexities facing engine manufacturers and the financial strains of material costs. The trio emphasizes the importance of dialogues between industry and labor to navigate these challenges while addressing broader implications for job security and national interests.
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INSIGHT

Boeing's Supply Chain Tariff Exposure

  • Boeing sources 80% of its commercial supply chain spend domestically, keeping tariff exposure limited to about $5-10 billion.
  • The complex global supply chain could shift tariffs among tiers, creating uncertainty in cost impact and timing.
INSIGHT

Airbus's U.S. Production Advantage

  • Airbus benefits from local U.S. production of A220 and A320neo, mitigating tariff impacts.
  • Trade turmoil risks worsening supply chain disruptions and may reduce air travel demand globally.
INSIGHT

Demand Destruction Threatens Aerospace

  • Demand destruction from economic downturn poses the greatest threat to aerospace beyond tariffs.
  • Commercial traffic growth closely tracks GDP; reduced GDP shrinks air travel and aircraft sales.
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