Why Boeing Stock Lost Ground Today

Lee Samaha, The Motley Fool

Thu, Apr 10, 2025, 10:15 AM 3 min read

Boeing (NYSE: BA) banal continued its caller turbulent thrust with a diminution Thursday morning: As of 12:30 p.m., it was disconnected by 6.4% arsenic the broader banal marketplace reassessed the lawsuit for optimism aft Wednesday's tariff-pause rebound.

Wednesday's quality needs to beryllium enactment into context. President Donald Trump enactment a 90-day intermission connected astir of his caller tariffs, but near his caller basal 10% tariffs connected astir each imports successful effect. However, helium besides near the tariffs connected Chinese imports progressive and boosted them up to 145%. Trump's determination to intermission the larger stock of his tariffs connected astir trading partners could bespeak his underlying willingness to marque conciliatory deals that amended U.S. companies' positions successful overseas markets.

That said, it's acold excessively aboriginal to reason that specified deals volition beryllium done, and a 10% tariff is inactive a 10% tariff.

Tariffs could deed Boeing successful respective ways:

• Tariffs are apt to summation Boeing's costs, notably connected earthy materials similar alloy and aluminum, and besides the costs for its suppliers, which volition walk those higher expenses connected to Boeing arsenic overmuch arsenic possible.

• Reciprocal tariffs by different nations, specified arsenic those being imposed by China connected the U.S., volition further rise the costs for overseas companies to bargain Boeing's planes, making them little competitory compared to Airbus' planes.

• Supply chains could beryllium negatively impacted. For example, Boeing supplier Howmet Aerospace has already declared the tariffs a force majeure lawsuit -- legally, an bonzer lawsuit extracurricular of its power that prevents it from fulfilling its agreements, and allows it to breach those contracts without being taxable to liability.

• Orders for Boeing planes could go governmental footballs successful immoderate tariff negotiations, a concern that could pb to bid delays and cancellations.

• A planetary economical slowdown could effect successful bid cancellations arsenic airlines intermission their capableness enlargement plans.

Investor sentiment astir tariffs volition undoubtedly determination Boeing's banal price. In addition, it's acold from wide astatine this signifier however overmuch friction and outgo volition beryllium added to the proviso concatenation arsenic this modulation into a high-tariff authorities proceeds -- assuming it does. Expect much volatility ahead.

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