World markets are currently experiencing turbulence due to an escalating tariff conflict, a situation that remains uncertain in its outcomes. Boeing, a major aviation company, is under pressure as the international trade tension threatens its market presence, particularly in China. The last stable year for Boeing was 2018, and the ongoing tariff changes may result in Boeing being excluded from the Chinese and even broader international markets.
Chinese airlines, in light of a 34% tariff increase on Boeing aircraft, may reconsider their procurement strategies. The state-run Chinese news agency, Yicai Global, reported that the tariff hike is expected to drive Chinese airlines to explore alternative suppliers or postpone purchases. The tariffs on Boeing planes and parts in China have now reached an estimated 130%, up from their previous rate. This places Boeing at a disadvantage in the Chinese market, compelling airlines to opt for leasing aircraft in the short term or looking at Airbus or COMAC for long-term orders.
AerCap, the largest aircraft lessor, expressed concerns in March 2025 with CEO Aengus Kelly indicating that Boeing might suffer more losses than Airbus from this conflict. Kelly mentioned that elevated tariffs could push Airbus’s global market share higher as Boeing’s aircraft become less affordable outside the United States.
Boeing’s current backlog consists of 6,319 commercial aircraft orders, with a significant number sourced from outside the United States, indicating vulnerability to international tariffs. Furthermore, Leeham News noted that upcoming US tariffs pose a threat to Boeing’s international market position more so than Airbus.
Currently, Boeing faces a financial strain, exacerbated by the Federal Aviation Administration (FAA) delaying certifications for the Boeing 737 MAX and other models. This, coupled with ongoing supply chain issues, reduces its ability to maneuver in the market.
The future for Boeing hinges on resolution of these trade tensions, as an escalation to a full trade or sanction war could cement its isolation from key international markets like China. Meanwhile, Airbus continues to capitalize on Boeing’s challenges, potentially increasing its share in the global aviation market.
