Boeing hit by US- China tariff war

China’smove to slap a 25 per cent levy on US aircraft in a retaliatory move places Boeing at a disadvantage against its key competitor Airbus in the best- selling single- aisle segment.

In a tit- for- tat response to tariffs by US President Donald Trump, China announced the levy on planes weighing between 15,000kg and 45,000kg, which would include some variants of its 737 family of passenger jets. Single- aisle jets, dominated by Boeing’s 737 and Airbus A320 series, are likely to account for 75 per cent of the global market in 20 years, according to Boeing’s estimates.

China, poised to surpass the US as the world’s biggest market for planes by as early as 2022, is crucial for the Chicago- based plane maker. More than 50 per cent of the commercial jetliners operating in China are Boeing aeroplanes, with more than a quarter of its global delivery last year to the Asian giant.

Boeing fell as much as 5.1 per cent to $ 314.10 in early NewYork trading ahead of the US market open. The shares, which closed on Tuesday at $ 330.82, are up 12 per cent this year. Boeing and Airbus declined to comment on China’s decision.