Us-china trade war:The trade war between America and China is increasing the 2 largest economy in the world. The impact of this tension is now visible on the major companies of both countries. Recently, China has taken a tough step and gave a big blow to American aircraft manufacturer Boeing, which has increased the company’s problems.
In fact, Dragon has instructed its airlines to give a big blow to Trump between trade and tariff war, not to take delivery of any new aircraft from American aircraft manufacturer Boeing. In addition, orders have also been given to stop the purchase of aircraft parts and equipment from American companies. This step has been taken by the US in response to a heavy tariff of up to 145% on Chinese goods.
China’s decision was heavy for Trump
China has implemented a retaliation of 125% on American goods in resistance, which has increased the cost of aircraft and their parts in the US to more than double. This has a direct impact on Boeing as China holds about 20% of the global aircraft market. In 2018, about 25% of the total boeing aircraft were sent to China, but due to business tension, no major order has been received in recent years.
This situation has become even more difficult for boeing because the image of the company has already been damaged. After two deadly accidents in 2019, China was the first to ground Boeing 737 Max aircraft. This was followed by another incident in 2024 when the door plug out during a flight raised serious questions on security and quality.
How will America get a shock?
Boeing is the largest exporting company in the US and the livelihood of about 150,000 American people is dependent on this company. But the company has been struggling for the last 6 years. The company has lost $ 51 billion since 2018. The special thing is that the company’s two-thirds aircraft are sold to international customers, and China is the largest market for the company.
According to Boeing, China will need about 8,830 new aircraft in the next 20 years, but after this decision, Boeing can suffer a lot of damage from this market and the decide of the dragon is also a shock for him.
How and where will China buy Jet?
China is now turning to European manufacturers such as Airbus and is keeping distance from American options. Apart from this, China is also looking for ways to help the airlines that have rented Boeing aircraft and are now struggling with the increased cost.
However, it is also clear from this confrontation that China is still dependent on foreign companies for passenger aircraft on a large scale. In such a situation, the impact of the US-China trade war will not be limited only to the trade front, but it will also have a widespread impact on the global aviation industry and supply chains.