Boeing (BA) stock plummeted 8.08% in Friday's trading session, as investors reacted to China's announcement of retaliatory tariffs against the United States. The move comes in response to President Trump's recent implementation of sweeping global tariffs, which has escalated trade tensions between the world's two largest economies.

The aerospace giant is particularly vulnerable to this trade dispute, as China represents a significant market opportunity for Boeing. According to projections, mainland China's air travel is expected to grow by 5.2% annually, potentially creating demand for nearly 9,000 new planes over the next two decades. The newly imposed tariffs make Boeing's aircraft more expensive for Chinese buyers, potentially disadvantaging the company against its main competitor, Airbus.

Boeing CEO Kelly Ortberg emphasized the importance of free trade to the company in a recent Congressional testimony. With approximately 20% of jet parts sourced from outside the U.S., the tariffs are likely to increase production costs for Boeing. Furthermore, as a major U.S. exporter, the company finds itself in the crosshairs of nations looking to retaliate against American trade policies.

The stock's sharp decline contributed significantly to the broader market selloff, with the Dow Jones Industrial Average dropping nearly 1,150 points. As trade tensions continue to escalate, investors will be closely monitoring the potential long-term impacts on Boeing and the overall aerospace industry.