Boeing and the U.S.-China Trade Tensions
18 April 2025 · Uncategorized ·
Source: · https://technews.tw/2025/04/16/boeing-new-danger/
Following resolution of labor disputes and quality control issues, American aviation giant Boeing now faces escalating trade conflicts between the United States and China. According to AFP reports, President Trump imposed tariffs on various Chinese products—tariffs that reach up to 145%. Beijing retaliated with tariff rates as high as 125%, significantly impacting Boeing Company, America’s largest exporter.
These new taxes have doubled manufacturing costs for aircraft and parts in the US. Today, President Trump accused China of violating a “big deal” agreement concerning Boeing. Bloomberg previously reported that Chinese airlines were instructed not to accept further planes from Boeing and halted purchases related to American companies' aircraft equipment and components.
Boeing declined to comment on these developments. Last week’s report by Bloomberg indicated that rising costs, driven by trade conflicts, prompted China Eastern Airlines to delay receiving a wide-body passenger plane from Boeing.
BofA Securities stated in its recent report: “Over the next 20 years, China will account for approximately 20% of the large commercial jet market.” The firm also noted that considering trade balance issues requires acknowledging Boeing’s significant role. BofA Securities further commented they are unsurprised by Chinese actions but believe such practices cannot continue indefinitely.
While Boeing's main competitor, Airbus, faces production capacity limitations and therefore can't be a sole supplier of large commercial aircraft for China, analysts also point out that COMAC (Commercial Aircraft Corporation of China) is “highly dependent on American suppliers.” A halt in purchases from US companies would likely disrupt China’s C919 program—a competitor to the Boeing 737 and Airbus A320.
These new taxes have doubled manufacturing costs for aircraft and parts in the US. Today, President Trump accused China of violating a “big deal” agreement concerning Boeing. Bloomberg previously reported that Chinese airlines were instructed not to accept further planes from Boeing and halted purchases related to American companies' aircraft equipment and components.
Boeing declined to comment on these developments. Last week’s report by Bloomberg indicated that rising costs, driven by trade conflicts, prompted China Eastern Airlines to delay receiving a wide-body passenger plane from Boeing.
BofA Securities stated in its recent report: “Over the next 20 years, China will account for approximately 20% of the large commercial jet market.” The firm also noted that considering trade balance issues requires acknowledging Boeing’s significant role. BofA Securities further commented they are unsurprised by Chinese actions but believe such practices cannot continue indefinitely.
While Boeing's main competitor, Airbus, faces production capacity limitations and therefore can't be a sole supplier of large commercial aircraft for China, analysts also point out that COMAC (Commercial Aircraft Corporation of China) is “highly dependent on American suppliers.” A halt in purchases from US companies would likely disrupt China’s C919 program—a competitor to the Boeing 737 and Airbus A320.