The U.S. aviation industry is under increasing pressure as trade tensions—especially those reignited by former President Donald Trump—begin impacting airline operations, aircraft manufacturing, and global aviation dynamics.
Leading U.S. airlines such as Delta Air Lines and United Airlines have revised their growth expectations downward, pointing to a combination of rising operating costs and weakening passenger demand. These changes are rattling investor sentiment across the aviation sector, with analysts warning of potential earnings slumps if the trend continues.
A major blow came from China earlier this year when it halted imports of Boeing aircraft. Chinese carriers represent a significant share of global aircraft demand, and the freeze on deliveries directly affects Boeing’s bottom line. Around 10 of Boeing’s 737 MAX aircraft, reportedly built for Chinese customers, remain undelivered and parked in the U.S., awaiting clearance that may never come.
According to Bloomberg, Chinese authorities have further instructed domestic airlines to stop buying aircraft parts from American suppliers, expanding the economic damage beyond complete aircraft sales and into the supply chain.
The repercussions are also being felt across the Atlantic. Ryanair, Europe’s largest low-cost carrier, and Delta, one of the largest U.S.-based carriers, have both hinted they may delay or scrap planned aircraft purchases due to price hikes linked to escalating tariffs.
It’s a double-whammy for the aviation sector: on one side, higher costs from trade disputes are weighing on capital expenditure plans; on the other, global demand is softening. Analysts say this creates a “profit squeeze” that could hit airline balance sheets harder than expected, especially if economic uncertainty continues into the summer travel season.
The impact isn’t confined to passenger services either.
The air cargo sector, which showed promising signs of recovery following a pandemic-induced slump, is also beginning to stutter. Industry data points to a noticeable slowdown in volumes over the past quarter, suggesting that trade-related disruptions are filtering into logistics and freight operations. For breakbulk and project cargo operators who rely on predictable schedules and high-volume international routes, this is a worrying sign.
Boeing’s troubles in China are not new—but they are getting worse.
Back in 2017–2018, Boeing secured 122 aircraft orders from Chinese buyers. In stark contrast, since 2019, it has only recorded 28 new orders from China, and none of those have come directly from Chinese passenger carriers. Most recent deals have involved freighters or leasing firms, a clear indication that political dynamics are influencing procurement strategies.
Market watchers note that Airbus, Boeing’s European rival, has benefited from this cooling relationship. In recent years, Airbus has landed significant deals with major Chinese airlines, often signing contracts during high-profile state visits or bilateral trade summits.
As long as U.S.-China tensions remain unresolved, aviation insiders expect more volatility ahead—not just for aircraft manufacturers, but across the wider logistics and supply chain networks that connect global aviation.
