Boeing's stocks experienced a significant drop on Friday amid the general decline in the markets following China's retaliation to the new tariffs imposed by the Trump administration. China announced that it would impose a matching 34% tariff on all American products imported into the country.

Boeing expects growth in Chinese demand for air travel and new planes over the next two decades. The company's global supply chain could be adversely impacted by the trade war, as it sources parts worldwide, manufactures its planes in the U.S., and exports them globally, including to China.

In addition to trade tensions, Boeing is facing other challenges such as legal issues related to safety standards violations. CEO Kelly Ortberg informed a Senate committee about the company's progress in safety reforms.

The stock price of Boeing dropped by nearly 9% to $137.60 in recent trading on Friday, hitting a low of $132.79 during the session, the lowest since October 2022.

Boeing has projected that Chinese airlines could purchase around 8,800 new planes over the next 20 years. The tariffs are expected to impact the company's operations, as Boeing is a significant client of China's aviation manufacturing industry and relies on Chinese parts for its planes.

Investors will closely monitor Boeing's earnings report on April 23 for insights into the potential effects of the tariffs on the company's financial performance.