Boeing managing increased input costs due to tariffs: CEO
Boeing CEO Kelly Ortberg, on the company's 1Q2025 earnings call, stated (23-Apr-2025) "We do have suppliers in countries subject to the new US tariffs, most notably in Japan and Italy where our suppliers do significant structures work on our widebody airplanes". Mr Ortberg said: "We are currently paying the 10% tariff on those components, but we should recover tariff costs for those aircraft that are subsequently exported, which is a large portion of our widebody". He added: "I hope over time that these tariffs can be resolved through negotiated agreements but until that happens, we will have to manage our way through these increased input costs".
Background ✨
Boeing faced significant uncertainty due to volatile global trade conditions, with tariffs potentially impacting its financial results and supply chain1. CEO Kelly Ortberg had previously expressed concerns that US tariffs could increase costs for parts from countries like Canada, highlighting supply chain continuity risks2. Additionally, the company was monitoring potential reciprocal actions from other countries in response to US tariffs3. The global trade landscape remained a complex and fast-changing environment for aerospace manufacturers4.