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The Impact Of Trump's Tariffs: Airplane Prices May Surge

Since the onset of the pandemic, the prices of new commercial aircraft produced by Airbus and Boeing have surged due to disruptions in the supply chain. Import tariffs imposed by President Donald Trump may further escalate aircraft prices. 

The two largest aircraft manufacturers in the world, Airbus from Europe and Boeing from the United States, have long struggled with high production costs. Both companies face increased expenses for essential materials such as titanium, components, energy, and labor. 

By the end of 2024, for instance, Boeing had just resolved labor strike issues. The company reached a new contract agreement with the machinists' union that includes a 38 percent wage increase over four years. 

"Compared to 2018, the prices of commercial jet aircraft have risen by approximately 30 percent," stated an aviation expert to AFP on Sunday, April 20, 2025, who chose to remain anonymous. Richard Aboulafia, managing director at AeroDynamic Advisory, further noted that the costs of various goods have sharply increased, particularly those made from titanium. This is largely due to the cessation of all titanium exports from Russia by the U.S. and, to a lesser extent, Europe. 

Aboulafia estimates that the prices of materials and equipment have risen by 40 percent since 2021, even before Trump imposed a 25 percent tariff on steel and aluminum, which are crucial for aircraft manufacturing. "It is somewhat ironic that raw materials are not the issue, yet Donald Trump is determined to make it one," he remarked. 

John Persinos, editor-in-chief at Aircraft Value News, indicated that conditions are likely to worsen given the implementation of these tariffs. "These tariffs are disastrous," he stated. 

Tag: Airbus And Boeing Airplane Prices Donald Trump