Trump’s tariffs could hit Boeing much harder than Europe’s Airbus: American aircraft manufacturer Boeing is bracing for a tough year that would see its supply chains destabilized and operational costs rocked as a result of US President Donald Trump’s tariffs, Politico reported on Friday. “That’s really, really expensive for us — if we’re building our products and we don’t have the supply chain components,” the company’s CEO Kelly Ortberg reportedly told Bloomberg.

Why is Boeing especially vulnerable? With a supply chain dependent on components sourced from Canada and the European Union, US tariffs on Canada and possible tariffs on the European Union (EU) would hike the US-based Boeing’s production costs. This would be further magnified if the EU retaliates to US tariffs with counter-measures, making the company’s aircraft very expensive in the European market. Unlike Boeing, Airbus has manufacturing facilities in both Europe and the US, which would give it more flexibility to adapt its supply chains to avoid the worst of the trade war between the EU and the US.

Industry-wide havoc: The tariffs could push Airbus to focus deliveries outside the US to avoid possible EU tariffs, the company’s CEO Guillaume Faury told CNBC. Furthermore, a retaliatory EU response would impact EU-based airlines with Boeing orderbooks. For example, the Irish low-cost carrier RyanAir may incur exorbitant import costs from its upcoming order of 30 Boeing 737 MAX aircraft. LOT Polish Airlines and Lufthansa — who rely on Boeing albeit to a lesser extent — would also be impacted.

Adding to Boeing’s string of woes: Boeing’s financial troubles are expected to continue in2025, with delivery delays and general supply chain disruptions continuing this year. The company’s net losses y-o-y rose fourfold in 2024, with revenues and commercial aircraft deliveries also slumping.

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