New tariffs can significantly affect the production cost of the Boeing 787 Dreamliner, especially given its globally sourced supply chain.
The Boeing 787 relies on a complex international supply chain. Key parts like wings, fuselage sections, and engines are sourced from countries such as Japan, Italy, the UK, and others. With new tariffs on any of these imported components, Boeing will face increased input costs.
For exemple, 35% of the 787 is made in Japan, and now subject to a 24% import tariff. We try to estimate a price increase range based on available data and assumptions about the Boeing 787’s supply chain.
Baseline: Boeing 787 Cost Structure
The average list price of a Boeing 787 (as of pre-pandemic figures):
- 787-8: ~$239 million
- 787-9: ~$292 million
- 787-10: ~$338 million
(Note: Airlines usually negotiate lower actual purchase prices, around 50–60% of list price.)
Estimated Production Cost (Direct + Indirect):
Industry sources estimate Boeing’s per-unit production cost is roughly $120–150 million, depending on the variant.
Major Imported Components (Estimate of Total Parts Cost %)
The 787 is heavily reliant on global suppliers:
- Japan: ~35% of components (fuselage sections, wings)
- Italy: ~10% (horizontal stabilizer)
- UK: ~5% (landing gear, some avionics)
- Others (Korea, Germany, etc.): ~10%
So roughly 60% of the 787’s parts by cost come from abroad.
Tariff Impact Estimate
Let’s say a 10% tariff is imposed on all imported aerospace components (a plausible scenario based on historical tariffs):
Calculation:
- Imported components value (60% of $150M): ~$90M
- 10% tariff on $90M = $9 million per plane
This would increase direct production costs by about:
- ~6% per aircraft ($9M on a $150M cost base)
- Possibly more if the supply chain gets disrupted or restructured
Estimated Total Price Increase for Airlines
If Boeing passes the full cost increase to customers:
- Final price per 787 increases by $9–15 million, depending on variant and configuration.
- For an airline buying a fleet of 10 planes, this means $90–150 million extra.
However, Boeing might only pass on part of the cost to stay competitive, so real-world increases could range from $5M to $10M per aircraft.
