Aircraft Engine & Parts Mfrs NAICS 336412, 336413

Mar 25, 2026 - Aircraft Engine and Parts Makers Get Boost From Tariff Ruling

• Aircraft engine and parts makers caught a break when the Supreme Court struck down the Trump tariffs and stayed largely protected when the White House moved to fill the gap. When the administration replaced the struck-down levies with a new 10% global duty, civil aircraft, engines, and parts were carved out under the 1979 Agreement on Trade in Civil Aircraft. Aviation items from major trading partners like the EU and UK remained duty-free, while parts from Brazil, Israel, and Canada that had previously faced tariffs of 10-35% suddenly became eligible for duty-free entry. The exemption also covers engine overhauls and improvements performed abroad, a meaningful relief for carriers and MRO operators. The refund opportunity is real too, but the main headache is administrative - all civil aviation imports must now be entered under newly issued tariff codes - but that's a manageable compliance adjustment for an industry otherwise largely off the hook.
• Boeing’s stepped-up aircraft deliveries are improving conditions for engine and parts makers by lifting production volumes after years of disruption, as commercial jet deliveries hit their highest level since 2018 and helped drive a 57% jump in the plane maker’s sales. The Federal Aviation Administration’s move to loosen production caps on the 737 MAX, allowing output to rise to 42 jets a month, gives suppliers better visibility and steadier demand for engines, components, and aftermarket parts that were squeezed by prior slowdowns, strikes, and quality lapses. Boeing’s acquisition of Spirit AeroSystems also reduces supply-chain risk by bringing key manufacturing stages back in-house. Still, benefits for suppliers may build gradually as Boeing remains focused on cash discipline, absorbs losses on fixed-price defense programs, and faces ongoing competitive pressure from Airbus.

• New orders for non-defense aircraft and parts rose 3.6% year over year in July 2025 - per the US Census Bureau - but was still down a massive 49% from the previous month as industry results swing wildly amid economic concerns and supply chain problems brought on by tariffs. Seesawing new orders are due to a late 2024 strike by Boeing factory workers and slower orders from rival Airbus. The Boeing work stoppage halted production of the company’s 737 MAX airliner, as well as on wide-body 767s and 777s. Along with safety concerns after a string of high-profile in-flight aircraft mishaps, issues at Boeing cascaded down into the aircraft parts industry as a whole with shrinking commercial airliner demand in late 2024 and early 2025. On top of all that, Boeing is concerned that Trump’s tariffs will hamper parts availability from its suppliers and increase its costs at a tenuous time.
• Delta is retrofitting more than 300 Airbus A320-series aircraft by replacing auxiliary power units (APUs) after a surge in “fume events,” where oil leaks or seal failures release toxic vapors into airplane cabins. The issue highlights design and maintenance challenges for APU manufacturers, pressuring suppliers such as Honeywell and Pratt & Whitney to accelerate fixes and upgrades. For the aircraft manufacturing industry, the problem raises regulatory and reputational risks, with airlines demanding higher safety standards and more reliable systems. It also adds costs across the supply chain as manufacturers face redesigns, potential litigation, and stricter oversight. Longer term, the industry may need to adopt new engineering approaches to air and ventilation systems to reassure operators and passengers, shaping how future aircraft are built.