Boeing investors brace for fallout from Trump tariffs

Investors in Boeing are braced to learn the full impact of Donald Trump’s trade war, amid fears the US planemaker could be hit harder than first expected after jets intended for a Chinese airline were returned to the US. A Boeing 737 Max 8 plane intended for use by a Chinese airline returned to the US on Monday from Boeing’s China finishing centre, according to flight data cited by Reuters. It followed the arrival in the US on Sunday of another 737 Max painted in the livery of China’s Xiamen Airlines at Boeing’s US production hub in Seattle. Boeing’s share price fell by nearly 3% on Monday, in line with a sell-off across Wall Street. US stock markets have been hit with much higher volatility this month as investors have tried to work out the effects of Trump’s tariffs. The aviation industry has been caught up in the trade war. Trump’s tariffs on goods from almost all countries have caused disruption across the world, but trade in goods between the US and China has been most affected, with levies of 145% on US imports and 125% on goods going the other way. A new 737 Max has a market value of about $55m (£41.4m), according to IBA, an aviation consultancy. That makes a 125% tariff prohibitive without significantly changing the business model of the airline business. The return of the Boeing jets underlines the vulnerability to tariffs of the US’s biggest manufacturing exporter. It adds to Boeing’s problems just as it was trying to recover from a mid-air door panel blowout in January 2024 that prompted the company to replace its CE. Kelly Ortberg, who took over Boeing after the safety crisis, will reveal the company’s first-quarter financial results on Wednesday. Analysts expect a significant improvement in sales compared with a year earlier, with revenues forecast to have risen 20% to $19.8bn, although they still expect losses of $466m for the quarter.<br/>