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Analysts: Tariffs Not Likely To Seriously Affect Boeing Prices, But Retaliation May Hurt Sales

8 March 2018
Reuters reports that analysts believe proposed tariffs on imported steel and aluminum would “barely budge the price” of a Boeing Company jetliner or fighter, but may affect sales due to “retaliation by countries such as China, one of Boeing’s biggest customers.” According to “several experts with direct knowledge of Boeing,” aluminum accounts for 80 percent of the “weight of older model planes such as the 737 and 777 but only about 12 percent of the cost.” A 10 percent aluminum tariff “would increase the cost of a plane by about 1.2 percent if all of the aluminum is imported,” although Boeing mainly uses domestically produced aluminum. (Image Credit: Associated Press–©)
More Info (Reuters)

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