Trump to visit Boeing plant in Missouri to tout impact of tax overhaul

WASHINGTON: US President Donald Trump will visit a Boeing Co plant in St. Louis on Wednesday to tout the impact of the tax overhaul bill signed into law in December, a White House official said.

A Boeing official confirmed the visit, but declined to elaborate. The company builds F15 and F18 fighter jets in St. Louis and employs about 14,000 people there.

In October 2016, it opened a 424,000-square-foot facility in the city that builds composite parts for the 777X commercial jetliner.

Trump will also attend a fundraiser in St Louis for Republican US Senate candidate Josh Hawley, the St. Louis Post Dispatch reported.

The visit will come days after Trump signed a proclamation imposing steel and aluminium tariff later this month from imports outside North America.

Boeing said in January it planned to start hiring more people because of the reduction in the US corporate tax rate resulting from the tax law. “More of an employment plateau in the near-term,” Boeing chief executive Dennis Muilenburg said on a conference call with analysts.

Boeing has shed 20 per cent of its workforce, or about 34,000 jobs, since employment peaked in 2012, in a bid to reduce costs and improve profits, Reuters reported in January.

Boeing said in December after the tax overhaul was passed that it would set aside an additional US$100 million for corporate giving, US$100 million for workforce development and US$100 million for “workplace of the future” facilities and infrastructure enhancements for Boeing employees.

Muilenburg declined to discuss the tariffs when asked by Reuters on Thursday just before Trump’s announcement.

He reiterated his long-standing general support for open trade. “Our position is we want free and open trade, good solid global trade is good for our business and we are going to be strong proponents of that,” he said.

Reuters reported last week the tariffs would have a minimal impact on materials costs for Boeing. But the company, the biggest US exporter, could be hit if there was retaliation by countries such as China, one of Boeing’s largest customers.

Boeing makes its planes exclusively in the US, but nearly 70 percent of the 763 jetliners delivered last year went to customers outside the country, including 22 percent to China.

Muilenburg downplayed concerns of a backlash from China, which has ordered thousands of jets.

Boeing plans to open an aircraft completion plant in China.