China tariffs on U.S. business jets seen a boon for Canada's Bombardier, others - Reuters
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April 5, 2018 - Reuters
- China's 25 pct tariff would affect some Gulfstream, Boeing models
- Jet buyers could turn to Bombardier as an alternative - analysts
- China is the largest business jet market in Asia
By Allison Lampert and Jamie Freed
MONTREAL/SINGAPORE, April 5 (Reuters) - China's plan to slap tariffs on some U.S.-made planes will hit demand for Gulfstream and Boeing business jets but benefit Canada's Bombardier and other rivals seeking a larger share of Asia's biggest market, jet brokers and analysts said.
China's Ministry of Commerce announced plans on Wednesday to place a 25 percent tariff on U.S. aircraft with an "empty weight" of between 15,000 kilograms and 45,000 kilograms amid a trade spat between the nations.
That category would include General Dynamics Corp's popular Gulfstream G550 and G650s and the larger Boeing Business Jet 1 that competes against models from European rival Airbus SE.
Gulfstreams are the top-selling busines s jet brand in China, where they compete fiercely against Bombardier's Global series and, to a much lesser extent, against the smaller Falcon models of France's Dassault Aviation SA.
U.S. aerospace analyst Richard Aboulafia said that Bombardier would benefit if the trade battle is sustained.
"Adding 25 percent to the cost of a G650ER is very good news for the Global 7000, just as it enters production," he said.