Trump Tariffs and the Aviation Industry's Supply Chain Worries

As the world's fastest growing aviation market, India plays a crucial role in the global aerospace supply chain. The recent tariff announcement by US President Trump has raised concerns about potential additional challenges to the supply chain, which already faces delays in delivering aircraft and components like seats to airlines worldwide.

Boeing's Stance on Free Trade

Boeing CEO Kelly Ortberg emphasized the importance of free trade for the aerospace giant, noting that 80% of commercial airplanes are delivered outside the United States, with 80% of their content sourced internationally. This makes Boeing a prime example of an export company that benefits from global markets and supports high-value US jobs.

Impact on Indian Suppliers

India, with its $1.2 billion annual sourcing from Boeing and significant orders from airlines like Air India and Akasa, is particularly vulnerable to the new tariffs. Aerospace companies and their Indian partners are concerned that the 26% tariff could increase costs and affect competitiveness.

Industry Reactions and Future Outlook

Companies like Aequs are assessing the implications of the tariffs, hoping for clarity in the upcoming US-India BTA negotiations. The industry fears that punitive tariffs could harm competitiveness and lead to job losses.