Beijing warns of 25% tariff on Boeing 737NG aircraft

Boeing could fall victim to the escalating trade dispute between the US and China after Beijing announced a potential 25% tariff on US-made aircraft that would affect the 737NG narrowbody. The Chinese Ministry of Commerce announced April 4 that it plans to impose this new tariff on US$50b worth of US exports, including aircraft, soybeans and autos. The aircraft tariff would apply to narrowbodies weighing between 15 and 45 tonnes, which would include the 737NG but not the heavier 737MAX. The announcement comes after the US announced a 25% tariff on some 1,300 Chinese products. In 2017, Boeing delivered 202 aircraft to Chinese airlines, of which at least 100 were 737NGs.The number of 737NGs delivered to Chinese airlines account for about one-third of Boeing’s total annual production. <br/>