The Office of the united states trade representative has published the list of 1,300 China made products worth US$50b to be targeted by 25% tariffs. The list notably include airplane parts, propellers and rotors, and airplanes with unladen weight over 15,000 kg., means tariffs clearly prevents China made Comac’s C919 and ARJ21 jets entering United States.
China is one of the Boeing’s major suppliers of parts for jets like the 737 and working closely with Boeing to manufacture parts for Boeing’s new 777 family aircraft.
Aviation Industry Corporation of China (AVIC) had been supplying parts for Boeing 737 for the past 25 years and produces composite empennage tips for Boeing’s 777 family of planes. AVIC’s subsidy Shenyang Commercial Aircraft Corporation (SACC), manufactures tips for the vertical fin and horizontal stabilizer of Boeing 777 family jets.
Boeing has not responded yet, but definitely it will put pressure on Boeing in price war with Airbus.
In response, China’s Ministry of Commerce said it “will soon take measure of equal intensity and scale against U.S. goods”…and added “We have the confidence and ability to respond to any protectionist measures by the United States,” in a statement quoted by the official Xinhua news agency.
If China decides to impose tariffs on Boeing products, Airbus will benefit from this trade war as it did with Bombardier C Series.