Boeing (BA) stock suffered a sharp 7% plummet during morning trading on Tuesday, dragging down the Dow Jones Industrial Average, following the implementation of President Trump's new round of tariffs on imports from major trading partners.

The aerospace giant's decline came after the Trump administration imposed a second wave of tariffs on imports from China, raising the total blanket tariff rate to 20%. Additionally, 25% tariffs were levied on imports from Canada and Mexico after a 30-day pause.

Boeing, as a major exporter that relies heavily on global supply chains, is seen as highly vulnerable to rising trade tensions and potential retaliatory measures from affected countries. China, Mexico, and Canada all announced countermeasures in response to Trump's latest tariff moves.

Economists warn that a prolonged trade war could significantly impact economic growth, reduce demand for exports like Boeing's aircraft, and increase costs for companies engaged in international trade. With roughly 80% of the materials used in aircraft construction being imported, steep tariffs could exacerbate Boeing's costs.