Boeing (BA) stock plummeted 5.01% in intraday trading, as investors reacted to concerns about the potential impact of Trump tariffs on the U.S. aerospace and defense sector. The sharp decline comes as analysts warn of increased costs and supply chain disruptions that could affect the industry.

According to TD Cowen, the demand impact from Trump tariffs remains "unknowable" for the U.S. aerospace and defense sector. The firm expects these tariffs to hurt the industry by increasing costs and disrupting supply chains. Despite these challenges, TD Cowen still favors defense stocks like Boeing, RTX, and Howmet Aerospace for their unique strengths and oversold values. However, the firm has reduced its price target for Boeing from $200 to $180, while maintaining a Buy rating.

While concerns loom over the sector, Citigroup offers a contrasting view, suggesting that the U.S. aerospace industry might be insulated due to strong order books and airlines managing capacity through retirements rather than cancellations. As Boeing prepares to report its quarterly results on April 23, investors will be closely watching for any indications of how the company plans to navigate these potential headwinds. The S&P 500 Aerospace & Defense index has shown resilience year-to-date, up 4% despite the recent turbulence.