{"id":12645,"date":"2025-07-23T17:07:34","date_gmt":"2025-07-23T15:07:34","guid":{"rendered":"https:\/\/www.mcfcorpfin.com\/?p=12645"},"modified":"2026-02-05T15:55:22","modified_gmt":"2026-02-05T14:55:22","slug":"industry-update-aerospace-defense-government-services","status":"publish","type":"post","link":"https:\/\/www.mcfcorpfin.com\/news\/industry-update-aerospace-defense-government-services\/","title":{"rendered":"Industry Update: Aerospace, Defense &#038; Government Services"},"content":{"rendered":"<h2>Aerospace<\/h2>\n<h4>Trump administration increases the tariff rate on steel and aluminum imports<\/h4>\n<ul>\n<li>On April 2, 2025, what is now referred to as \u201cLiberation Day\u201d, Trump announced a 10% import tariff on all products for ~90 countries and imposed higher \u201creciprocal\u201d tariffs on targeted geographies and industries (incremental to prior tariffs imposed)<\/li>\n<li>In early June 2025, the Trump administration increased tariffs on steel and aluminum imports from 25% (set in March 2025) to 50%; steel and aluminum represent the two largest raw material sources used in aerospace manufacturing<br \/>\n\u2013The tariffs apply to imports from all countries except Russia which already faces a 200% tariff on aluminum and the United Kingdom which negotiated a 25% tariff under the<br \/>\nU.S. \u2013 UK Economic Prosperity Deal announced in early May 2025<\/li>\n<li>Aerospace Industries Association and Airlines for America trade groups have warned of the potential negative consequences of these rate increases including damage to the recovering aerospace supply chain, a higher volume of counterfeit parts entering the country, and a spike in airline ticket prices and shipping rates.<\/li>\n<\/ul>\n<h4>Boeing resumes deliveries to its Chinese customers<\/h4>\n<ul>\n<li>Boeing resumed aircraft deliveries to its Chinese customers as the U.S. and China have eased their tariff war; the delivery of new planes to China had been on hold since April 2025 when at least three 737 MAX jets were repatriated by Boeing to the U.S.<br \/>\n\u2013China currently represents ~10% of Boeing\u2019s commercial backlog and is expected to become an increasingly important country in the aviation market<\/li>\n<\/ul>\n<h4>Boeing and Airbus backlogs grow amid continued production struggles<\/h4>\n<ul>\n<li>Boeing and Airbus continue to face challenges ramping production due to persistent supply chain constraints \u2013 most notably engine shortages and structural component delays<\/li>\n<\/ul>\n<h4>Boeing and Airbus Backlogs and Production Rates<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-12646\" src=\"https:\/\/www.mcfcorpfin.com\/wp-content\/uploads\/Screenshot-2025-07-23-163655.png\" alt=\"\" width=\"1087\" height=\"393\" \/><\/p>\n<pre>Sources: DACIS, Airbus, Boeing, and other publicly available resources.\r\n\r\n<\/pre>\n<h4>2025 Paris Air Show takeaways (for the full version click <a href=\"https:\/\/www.mcfcorpfin.com\/news\/2025-paris-air-show-top-10-takeaways\/\" target=\"_blank\" rel=\"noopener\">here<\/a>)<\/h4>\n<p>Davidson | MCF\u2019s AD&amp;GS team attended the Aerospace industry\u2019s largest event \u2013 the 55th International Paris Air Show in June<\/p>\n<p>\u2013Searching for Smooth Air Amidst Geopolitical and Market Turbulence: Despite geopolitical tensions and the recent Air India tragedy, the world&#8217;s biggest aviation trade show was vibrant and well-attended<br \/>\n\u2013Israel-Iran Conflict Felt on the Show Floor: The Israel-Iran conflict was a significant topic; the French government controversially shut down several Israeli exhibits for displaying attack weapons<br \/>\n\u2013European Defense Resurgence: The show highlighted Europe&#8217;s increased defense budgets and continued dependency on U.S. defense technology amid regional conflicts and doubts about U.S. commitment to NATO; a record ~45% of exhibits at the air show were defense oriented<br \/>\n\u2013Boeing Keeping a Low Profile for a Second Straight Year: Boeing had a low-key presence at the show due to the Air India crash investigation, booking its lowest Air Show purchase order total in over 12 years<br \/>\n\u2013Commercial Demand Remains High: Despite Boeing\u2019s recent challenges, commercial aerospace demand remains high with Airbus announcing significant orders and options<br \/>\n\u2013Drone &amp; eVTOL Proliferation Overshadows Traditional Rotorcraft: eVTOLs and drones were prominent, showcasing advancements in autonomous systems and the impact of the Ukraine conflict on warfare technology<br \/>\n\u2013Aerial Displays \u2013 More of the Same as Legacy Platforms Shine: The aerial displays featured legacy platforms like the F-35, with the industry focusing on sustaining and adapting existing aircraft due to supply chain and budget constraints<br \/>\n\u2013Creating a New \u201cSpace\u201d for Space: The Paris Space Hub established Space as a key focus at the Air Show with notable announcements, including ESA&#8217;s agreement to build the Laser Interferometer Space Antenna and a partnership with Thales Alenia Space and Blue Origin to advance space exploration in low Earth orbit<\/p>\n<h4>Executive order clears path for U.S. supersonic flights<\/h4>\n<ul>\n<li>In early June 2025, Trump signed an executive order requiring the FAA to remove restrictions on supersonic flights within U.S. airspace that have been in place for 50+ years<\/li>\n<\/ul>\n<p>\u2013While the executive order spurred optimism for commercial supersonic flight companies like Boom Supersonic; questions around affordability and sustainability remain<\/p>\n<h4>UK commits to investing in clean tech for air travel<\/h4>\n<ul>\n<li>In mid-June 2025, the UK government announced a $300M+ investment in clean aviation technology aimed at accelerating the development of zero-emission flight, advanced manufacturing techniques, and aerodynamic efficiency<\/li>\n<\/ul>\n<p>\u2013The funding will be directed towards major aerospace companies like Airbus and Rolls-Royce with smaller business and academic institutions assisting with the research<\/p>\n<pre>Sources: DACIS, whitehouse.gov, and other publicly available resources.\r\n\r\n\r\n<\/pre>\n<h2>Download<\/h2>\n<p>The full report, including Global, US Defense, Government Services and Space Market update as well as M&amp;A activity, debt and capital markets activity, can be downloaded at the top of the page.<\/p>\n<h2>Contact us<\/h2>\n<p>If you have any questions about the report, don\u2019t hesitate to get in touch with one of our team.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aerospace Trump administration increases the tariff rate on steel and aluminum imports On April 2, 2025, what is now referred to as \u201cLiberation Day\u201d, Trump announced a 10% import tariff on all products for ~90 countries and imposed higher \u201creciprocal\u201d tariffs on targeted geographies and industries (incremental to prior tariffs imposed) In early June 2025, [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12659,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[66],"tags":[],"class_list":["post-12645","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-publikationen"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Industry Update: Aerospace, Defense &amp; 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