MYNORTHWEST NEWS

China tariffs will raise ‘high level of concern’ for Boeing, analyst says

Mar 22, 2018, 9:39 AM | Updated: 1:08 pm

Boeing, China tariffs, trump...

(AP)

(AP)

Ramifications from President Trump’s multi-billion dollar tariffs should raise “as high a level of concern as you can get” for Boeing workers.

Washington Boeing workers to get nearly $600M in bonuses

That’s according to aerospace analyst Richard Aboulafia, who told Seattle’s Morning News on Thursday, March 22, the tariffs will result in backlash from the Chinese government. Aboulafia says China could easily hit back at the U.S. by refusing to purchase more jets from Boeing.

China has the biggest appetite for commercial jets in the world. More than a decade ago China accounted for 2 percent of the market. Last year, the country made up 23 percent of the market.

President Trump signed an order Thursday that will lead to trade sanctions on as much as $60 billion worth of imports. It is punishment for how China has gone about challenging the U.S. supremacy in technology, Trump said. An investigation found China used hackers to steal secrets and pushed companies to disclose secrets in exchange for access to their market.

Expected penalties include restrictions on investment and tariffs on more than $40 billion worth of products.

Chinese officials urged the White House to act “rationally,” promising to open up to more foreign products and investment, The Associated Press reports.

Impacts on Boeing

Though China may be subtle about how it retaliates, Aboulafia says it could hurt Boeing’s long-term plan.

Boeing currently has plenty of orders. But the plan is to increase production.

“You need to keep feeding this machine…” Aboulafia said. “Chinese orders extend a few years, but what do you do beyond that?”

This will kill the autonomous vehicle movement

China has ordered Boeing and Airbus jets. However, all orders could go to Airbus, which would be an easy punishment, Aboulafia points out. The two companies are direct competitors.

“No reason why they [China] couldn’t do that,” he said. There’s an Airbus factory in China.

China could retaliate within six months or less, Aboulafia says.

And anything that damages free trade will “poison the well here.”

MyNorthwest News

Image: Brightly colored eggs are set on a table on the South Lawn of the White House in Washington,...

Ted Buehner

Expect good Easter weekend weather for egg hunts, chilly evening Mariners games

Both Saturday and Sunday of Easter weekend will feature temperatures warming to around 60 degrees across much of Western Washington.

11 hours ago

Taylor Swift performs onstage during the Taylor Swift | The Eras Tour at Lumen Field on July 22, 20...

Micki Gamez, KIRO Newsradio and Bill Kaczaraba, MyNorthwest

Seattle tourism dollars break records following All-Star Week, Taylor Swift

It was a record-setting year for dollars flowing into Seattle from tourists.

12 hours ago

Image: A bridge in Carnation....

Julia Dallas

Carnation frustrated with Seattle again after 8th false emergency alarm induces widespread panic

Carnation citizens have faced a series of panic-inducing alarms after SPU's system for the Tolt Dam falsely sounded eight times.

13 hours ago

Grocery store shopper...

Bill Kaczaraba

Ways to deal with Seattle grocery store sticker shock

Seattle grocery store sticker shock continues to play havoc on locals, but there are ways to counter high prices.

14 hours ago

belltown hellcat social media...

Frank Sumrall

Infamous ‘Belltown Hellcat’ social media influencer charged with reckless driving

The social media influencer has been accused of driving 107 miles per hour through Belltown in a Dodge Hellcat.

15 hours ago

KIRO Newsradio gracie awards...

MyNorthwest Staff

KIRO Newsradio anchors receive Gracie Awards for outstanding work

Heather Bosch and Lisa Brooks, anchors at KIRO Newsradio, have been honored by the Alliance for Women in Media with prestigious Gracie Awards.

18 hours ago

China tariffs will raise ‘high level of concern’ for Boeing, analyst says