NextFin news, On Thursday, September 18, 2025, the aviation industry faces mounting challenges as tariffs on steel and aluminium imports, introduced under former US President Donald Trump's administration, continue to drive up costs for aircraft manufacturers and airlines globally. These tariffs, set at 25%, have disrupted the complex international supply chains that underpin aircraft production, notably affecting Boeing's manufacturing operations and the broader airline sector.
Boeing, the US-based aerospace giant, relies heavily on aluminium and steel, with its popular 737 aircraft family composed of approximately 80% aluminium and 11-13% steel. The tariffs have increased raw material costs, leading to higher production expenses. Boeing CEO Kelly Ortberg has expressed concerns about maintaining competitive pricing amid these supply chain disruptions.
International suppliers also face ripple effects. Key component manufacturers such as France's Safran Landing Systems and parts producers in the UK, Italy, and Japan contribute to Boeing's aircraft. The tariffs threaten to increase costs across this global network. AerCap, the world's largest aviation leasing company based in Ireland, warned that retaliatory tariffs from the European Union could add up to $40 million to the price of aircraft like the Boeing 787 Dreamliner.
Airbus, Boeing's main competitor, has indicated it may shift deliveries away from US customers if tariffs continue to impact operations. Airbus CEO Guillaume Faury noted the company's ability to prioritize deliveries to other regions with strong demand.
Airlines worldwide, operating on thin profit margins averaging 3.6% globally according to the International Air Transport Association (IATA), are expected to pass increased costs to passengers through higher ticket prices, additional fees, or reduced services. The tariffs may also delay fleet modernization, forcing airlines to operate older, less fuel-efficient aircraft, further increasing operational costs.
Africa is poised to suffer the most from these developments. IATA's 2025 financial forecasts project the continent's airline industry to contribute only $200 million to the global net profit of $36.6 billion, with a profit margin of just 0.9%. The increased costs from tariffs threaten to exacerbate already high airfares in Africa, potentially making air travel less accessible and prompting airlines to cut less profitable routes, thereby reducing connectivity within the continent.
These tariffs, while originating in US trade policy, have far-reaching consequences for the global aviation industry, affecting manufacturers, airlines, and passengers alike. The increased costs and operational challenges underscore the interconnected nature of the aviation supply chain and the vulnerability of airlines, especially in regions with fragile financial standings.
Emil Gumede, an aviation analyst at the University of Sussex, highlights that the tariffs' impact extends beyond the US borders, with African airlines among the hardest hit due to their narrow profit margins and high operating costs. The rise in aircraft purchase and maintenance prices, coupled with potential airfare hikes, could make air travel unaffordable for many customers.
Source: BusinessLIVE, article by Emil Gumede, published September 18, 2025, https://www.businesslive.co.za/bd/opinion/2025-09-18-emil-gumede-how-trumps-tariffs-could-affect-the-aviation-industry/
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