Boeing Faces Potential $40M Price Increase Per 787 Due to Proposed Tariffs

Experts warn that rising costs from U.S. tariffs could shift global market dominance toward Airbus.

AerCap CEO Aengus Kelly predicts a worst-case scenario where Boeing 787 prices rise by $40 million due to proposed 25% tariffs on materials like steel and aluminum.
The price hike could make Boeing aircraft less competitive, prompting airlines to consider Airbus, which may gain up to 80% of the global market share if tariffs persist.
Boeing's supply chain, which relies heavily on imported parts from countries like Canada and Mexico, faces increased costs and potential disruptions from the tariffs.
European Union retaliatory tariffs on U.S. goods could further increase Boeing's costs in key markets, while Airbus benefits from its U.S.-based facilities and diversified supply chain.
Despite these challenges, AerCap notes improvements in Boeing's product quality, reliability, and safety over the past year, as the company works toward recovery from prior production setbacks.