China proposes tariffs on Boeing planes, but it’s less than meets the eye - Leeham News
the proposed scope for the tariffs appears to intentionally avoid the meat of U.S aircraft exports to China, suggesting to us that this is more of a warning rather than a quid pro quo response
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April 4, 2018 - Leeham News
The Trump Administration's ill-conceived proposed tariffs on aircraft parts made and imported from China prompted what on the surface appears to be a hit back at Boeing, but which in reality seems more fluff than substance.
Jon Ostrower broke the news yesterday about the list of aircraft components Trump proposes tariffs on. Since Boeing uses China for some of its aircraft components, the tariffs would hurt Boeing.
China today proposed 25% tariffs on Boeing airplanes—but excludes the MAX 8 by weight. (The MAX 7 may be included, with between 10-20 announced ordered by two Chinese airlines).
According to Airfinance Journal Fleet Tracker, there are only 19 737-800s remaining on order for delivery this year through 2021. This doesn't include any Unidentified orders.
Eight -800s are scheduled for delivery this year, six in 2019, two in 2020 and three in 2021.
US aerospace analysts are unimpressed. The following is a synopsis of their reaction.
Trade War Heats Up: We are buyers of Boeing and related suppliers on weakness resulting from the overnight news that China will impose a 25% import tariff on certain U.S. aircraft. However, the proposed scope for the tariffs appears to intentionally avoid the meat of U.S aircraft exports to China, suggesting to us that this is more of a warning rather than a quid pro quo response.