Goodness, this is going to get messy... China tells airlines to stop taking delivery of Boeing jets Bloomberg reports that the Chinese government has told its domestic airlines to stop taking delivery of aircraft from American aerospace giant Boeing, as tensions between Washington and Beijing continue to escalate. We've seen President Trump impose tariffs of…
Continue reading: China Bans Boeing Aircraft Deliveries, As Trade War Escalates
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I would point out that your impression that Xi is unlikely to back down is based on your impression of his personality, not an analysis of the importance of a massive trade surplus in a dollar-peg economy with an unpopped property bubble.
Hmm, about Cathay Pacific, has the US also applied tariffs above 10% on Hong Kong?
Karma is a bitch, Americastan.
Good luck with Orange Putin and Elonia.
I am sure Israel and AIPAC will come and save you.
Except he is probably just going to send President Pussygrabber a big beautiful letter and Orange Larry the Mental Guy will back off the trade war.
Hong Kong is treated as part of China for these tariffs so will be charged 145% for goods imported into the US. Hong Kong will not be imposing a tariff on American goods going into HK as it is a free port; I imagine this will be quite a loophole for mainlanders who want (relatively, because those products will suffer from tariffs in the supply chain) tariff free access to American goods.
Why drag Israel into this ? Latent anti Israel bias ? Or perhaps a fan of "Jews control the world" or at least America ?
Could an airline just have it US registered or lease the planes from a lessor in the US
This is kind of beautiful news in my opinion for America’s and the Western Worlds airlines as there is currently a back log for the narrow body MAX right now, allowing Boeing to focus on these. Bet you the same is true for the Wide-bodies.
Wonderful, Trump is running protectionism to help out *checks notes* Comac and Airbus.
As if Boeing needed this !
How you treat your biggest donor (the country which finances your debt), your biggest customer and one of your biggest suppliers….
Another proof of the amateurism displayed last week in the USA.
Someone is embarassing his country and it is not Mr Xi.
Sadly Mary, one expects that in the end the world economy will suffer long before anything like an impeachment.
There is one other possibility …. but best not to go there.
Ben, shouldn't you have said: it’s not like airlines were going to take delivery of planes with 125% tariffs anyway. It's 125% on imports from the US, 145% on imports from China. I don't think any US airlines will be importing Cormacs anytime soon so there's (currently) no scenario where a 145% tariff would apply anyway.
That was on the horizon and only brings more uncertainty to Boeing, depending on how long the ban will last.
It may give a boost to the Chinese COMAC C919, but we should not forget that a large number of components for that aircraft are manufactured in the US and could fall under export restrictions, if the US government so decides.
What is fairly clear to many economists is that the flow of trade will adjust and - instead of flowing to/from and through the US - will in the future bypass the US.
Not just U.S. government decisions. Chinese have restricted airline parts as well. The rest of the world has so many opportunities now that the U.S. is out of the picture.
@Mary An impeachment means nothing. Trump has already been impeached twice in his first time but was not removed from Office. Impeachment lies with the House of Representatives (Lower House) and removal from Office lies with the Senate (Upper House). An impeachment is a charge or charges (written accusation). Currently, the Republican Party controls both chambers so it is highly unlikely that even an impeachment will occur at the moment.
Well, for the next 60 days, while he is negotiating with Russia and Iran that is unlikely. The mental guy act is why we are talking about recession, which is why the price of oil has plummeted, coincidentally during negotiations with 2 countries, whose current cash flow is almost entirely dependent on oil prices.
Isreal and Saudi (I guess they could be called out too) are the only two traditional Allies of the US (of any economic merit) that the current administration hasn't straight up insulted or made an other of.
@Stanley C
If Trump makes the R electeds feel threatened enough it could, even if they are fine to keep toeing the line for him now. I like to think of it this way, Trump can't run oppo campaigns against them in revenge if he's in federal prison. Which is where he would be right now if Moscow Mitch hadn't squelched the second impeachment for him.
Herr Trumpf is making America great again! A great big wasteland.
A nation being run by idiots with a following of morons who are being idolized by schmucks.
And the remaining relatively sane individuals are getting the screw job, not to mention the world itself.
Rob, you’re not factoring culture…China will not “lose face” in a showdown…it’s a core cultural matter
China has placed to 125% tariff on imported US goods, which I assume would include Boeing planes
The problem isn't as big as the way its been frame, but it could be in the long term.
For now the Chinese Airlines have a contract and obligations with Boeing. The exposure of Boeing orders and commitments with China stands with 130 aircraft of a total world backlog of 5,500.
The potential problem its the grow of the Chinese markets in the long term which its forecast for a total of 20% market share. And that´s the piece of the pay You do not want to lose.
The other problem its the impact on spare parts and components,
we already experience this with disruptions with the sanctions on titanium and other minerals from Russia.
Airbus will increase more its footprint in China.
And furbish them with what, exactly?
Did you forget that seat deliveries (already severely backlogged for many carriers) are tied to expectant aircraft deliveries; that they're certified per model for each carrier; and can sometimes be patented for custom use by only a single carrier/holding?
Doesn't do "America's and Western Worlds airlines" much good to get aircraft, if it's going to take XX months/years for the seats with which to outfit those aircraft, to be delivered.
China will have to sell their boings for dirty cheap at a big lost since everyone knows there is a fire sell. And for not buying parts to fix their planes? well, it will drop off the skys. So Karma is indeed a bitch. China will lose big as well.