President Donald Trump’s prices On China, injure an appreciated American business: Boeing.
Boeing actions fell 2.4% on Tuesday after Bloomberg reported, citing anonymous sources, which China has ordered its airlines to stop taking Boeing aircraft and American aircraft parts. After the story of Bloomberg, Trump said on Truth Social That China “denied the big Boeing agreement”.
Last week, China Southern Airlines stopped the sale of 10 of her used Boeing 787-8 Dreamliner planes, according to a file with Shanghai United and Equity Exchange. China Southern had planned to replace her Dreamliners with larger and more recent planes, but he reversed his decision.
It is not clear if the airline has suspended its plan due to the order of China to stop buying planes Boeing Or because American products are now carrying out a 125%levy, which would increase the prices of new Boeing purchases.
On April 11, the airline filed opinions saying that it suspended the sale of planes. China Southern quoted “questions affecting the real estate transaction”. Nikkei first pointed out the sales suspensions.
Boeing did not immediately respond to a request for comments.
Eat in the market share
China is an important market for the American recovery aircraft manufacturer. Last year, it took a series of successes last year, including a strike by mass workers and financial losses. Any taxation on deliveries threatens its market share as it competes with Airbus in Europe and the new entrants of China.
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In its 2024 annual report submitted in February, Boeing called China “important market” which would be affected by the “deterioration of geopolitical or commercial relations”. Boeing has not broken down the company’s income by region.
“If we are unable to deliver planes to customers in China in accordance with our assumptions and / or obtain additional orders from China in the future, we can undergo reduced deliveries and / or a lower market share,” wrote the company.
China Southern and Air China, two public airlines, are among the 10 largest carriers in the world depending on income.
A restriction on the purchase of aircraft or whole parts in the United States could lead to other carriers belonging to a Chinese government, such as China Eastern, Hainan Airlines, Sichuan Airlines, turning to Airbus or domestic planes based in France, for new orders, still injuring Boeing.
Two of the largest carriers in the world, Ryanair and Delta, previously declared that they would delay Boeing deliveries if prices were imposed on their orders.
“We could delay them and hope that common sense will prevail,” Ryanair CEO, Michael O’Leary, told Financial Times in the comments published on Tuesday.
Boeing action is down 12% so far this year.