Why Shares in Boeing Slumped This Week

Shares in Boeing (NYSE: BA) declined by 12.9% in the week to Friday morning. Like most of the market, the aerospace giant felt the impact of the tariffs announced by the U.S. administration.The tariffs potentially hit Boeing in two ways. First, they can negatively impact its competitive positioning. Boeing is a major U.S. exporter and a company likely to suffer in an extended trade conflict. It also sources products internationally. In addition, its suppliers source products internationally, so tariffs are likely to raise its costs, make its airplanes less competitive, or negatively impact margins. They could also slow its supply chain -- a key issue as Boeing tries to ramp up 737 MAX production.The second potential impact comes from a slowing in global growth caused by an extended trade conflict. When growth slows, so does travel activity, and airline profitability takes a hit, leading to airplane order cancellations and delays.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool