Impact Of Trump's Tariffs on Aviation

INTRODUCTION

'Make America Great Again'. This was the tagline of Trump's whole 2024 US election campaign. And what's the first thing you do as a president to make your country great again? Impose global tariffs, of course.

Trump's administration raised the average 2.5% tariff rate to an astonishing 27% in 2025, highest since the Smoot-Hawley act of 1930. Xi Jinping (President of the People's Republic of China) branded Trump as a bully for his aggressive tariffs and knowing Trump, he might carry this label as a medal on his shoulder.

Aviation is a multi nation sector. It is the key force driving transportation of goods, and people. But it is highly volatile as well. And with Trump in charge, it is difficult to predict which is more unpredictable: Mr. Trump or the Aviation sector. These tariffs threaten to disrupt the balance on which the stability of aviation lies.

In this blog, we shall present to you how these tariffs impact aviation, who suffers, who benefits, and what the future looks like. So hang tight and let's dive in.

WHAT ARE TARIFFS AND WHY DO THEY MATTER IN AVIATION?

Nowadays, almost every article I read starts with the same words: tariffs, Trump, and Trade War. So why not brief ourselves with what tariffs are and why do they matter in Aviation.

Tariffs - "Taxes on Imports" - Tariffs is a tool which government uses to protect domestic industries and help them grow. Tariffs are paid by the companies that import the goods from foreign companies. In the case of USA, these tariffs are paid to the US treasury.

An aircraft manufacturing company relies heavily on foreign parts to keep costs competitive. Tariffs increase the price of these components for the importing company and in turn, the price of the aircraft rises for everyday airplane buyers like you and me. Believe me, I would have already bought a Boeing 737 Max this year, if it were not for those tariffs.

GLOBAL AVIATION UNDER TARIFFS

There is a famous saying "When America sneezes, the whole world catches a cold". Upon the announcement of tariffs, there were a lot of implications for global aviation. Let's take a look at each of them:

Steel and Aluminum Tariffs: What do you need to build a plane? Paper, and a origami skills. But what do these giant aircraft manufacturing companies need to build planes? Steel and Aluminum. Tariffs on import of Steel and Aluminum increased from 25% to 50% in June 2025, increasing the cost of airplane manufacturing. Aluminum is used in the manufacturing of aircraft parts like fuselage, wings and skin while steel is used in landing gear, engines and structural components. One question you might have is "If tariffs are imposed on steel and aluminum, why not sources these materials domestically?". Well, even if they source these materials domestically, the global price rises because tariffs disrupt supply chains. This 50% tariff on aluminum is itself enough to raise prices of a single aircraft by a couple million dollars. To compensate for this cost, aircraft manufacturers like Boeing, Airbus, Embraer, etc. pass down the costs to airlines making acquiring new planes expensive. Maintenance costs also increase for the airlines as the spare parts used are also made of steel and aluminum.

Air Cargo and Trade Flows: Tariffs directly hamper trade over borders. There is much less demand for foreign goods, which in turn means less cargo demand. The business of cargo airlines like FedEx, UPS, DHL etc. relies on international shipping. The less demand for cargo hampers the very foundation of these shipping companies.

Boeing - A Tragedy: You know this topic could have its own blog. There used to be famous saying in Aviation "If it ain't Boeing, I ain't going". Well, there is a slightly altered version of the same saying that is gaining popularity nowadays "If it is Boeing, I ain't going". Boeing was the symbol of the American dream but it is now slowly turning into the American Nightmare. I want to mention that I love Boeing but after the recent tragedies it is no surprise that people are scared to board Boeing flights. And these tariffs might actually harm Boeing more than its foreign competitors like Airbus. When Trump announced 145% tariff on Chinese goods, Beijing ordered its airlines to cancel all incoming deliveries of Boeing jets. A heavy blow to Boeing as China accounts for almost 25% of Boeing's deliverables. This enabled Airbus and COMAC to deepen their grip on the Chinese aviation market.

Many of the US Aviation's top names have criticized this trade war because of the impact it leaves on aviation. The General Aviation Manufacturers Association, said ,“Tariffs would affect the intricate and very complex global supply chain that can take years to establish given that it relies on suppliers with unique capabilities that are highly regulated and therefore cannot be easily replaced.” (source: gama.aero). Aerospace Expert Jerrold Lundquist from Lundquist Group raised similar issues stating, "Because of the progressive tiering of manufacturing processes and insertion into higher order assemblies, parts frequently pass international borders more than once. This makes assigning a value to be tariffed very difficult. Determining and applying a value added measure could add significant amounts of time and cost to the overall process." (source: Forbes)

Although, recently USA and European Union signed a deal to avoid paying tariffs on aircraft orders and parts, tariffs on steel and aluminum still remain under doubt. During this dubious period, some American airlines used some "creative" ways to avoid these tariffs. For example, Delta Airlines had an airbus plane delivered to Japan instead of the USA to avoid tariffs. Talk about finding loopholes.

WINNERS AND LOSERS

The lyrics from the popular song "The Winner Takes it all" from ABBA sums up the whole situation: "The Winner takes it all and the loser has to fall". In all fairness though, these tariffs have generated over $100 billion in tariff revenue. So, one can say Trump's policies did have a positive impact on funds generation. The steel and aluminum domestic producers did see some benefits but tariffs did create mixed impacts, with the costs for manufacturers increasing.(source: stout.com). And for all you Concorde fanboys and fangirls, supersonic commercial aviation might be making a comeback thanks to Trump removing the prohibition on commercial supersonic aviation. We might be more closer to achieving our dream of flying at supersonic speed than ever.

US Aviation is one of the biggest losers. Boeing lost a major chunk of their business with Chinese airlines, US Airlines faced increased costs which ultimately had to be bore by the passengers.

I don't want to jinx it but boy did Airbus stepped in at the right time. Airbus took full advantage of the situation. They positioned themselves as a major aircraft provider for China, capturing a huge global market. Even Chinese aircraft manufacturer COMAC were able to grow there business with the absence of Boeing in China.

CONCLUSION

So, what have we learned from this turbulent flight through tariffs and aviation? That when politics meets planes, the results are rarely smooth cruising. Trump’s “Make America Great Again” strategy through tariffs may look good on a campaign poster, but in the aviation industry, it feels more like a missed shot (no pun intended). Tariffs may protect some domestic industries in the short run, but for aviation, a sector that survives on global cooperation, tariffs are a bad idea.

The biggest victim? Boeing. Once the crown jewel of American innovation, Boeing is now losing ground not just to its old European rival Airbus, but also to COMAC, China’s rising star. And when Beijing told its airlines to cancel Boeing orders, it wasn't just politics, it was billions in lost business. Tariffs might have been introduced to give American companies edge over the foreign companies, but they ended up giving foreign companies the edge against American companies.

Airlines aren’t happy either. They’re paying more for new aircraft, more for maintenance, and yes, you guessed it, passing those costs on to us, the passengers. That weekend getaway flight? A little pricier thanks to tariffs. And cargo carriers like FedEx and UPS? They’re seeing fewer goods shipped, because tariffs choke the very trade that keeps their planes in the sky.

At the end of the day, tariffs may be a powerful political tool, but in aviation, as useful as a bike without wheels. They disrupt supply chains, inflate costs, and weaken the very industry that keeps America competitive in the global market. If the goal was to make America’s aviation sector great again, tariffs have done the opposite.

The sky may still be open, but thanks to tariffs, it’s a lot cloudier than it used to be.