Trump Announces Tariff Pause, Boeing Planes Back on the Table with China
US and China reach deal to temporarily lower tariffs, resuming Boeing deliveries to China.
In a major step towards de-escalating the trade war between the U.S. and China, President Donald Trump declared a 90-day halt on tariffs while they negotiate a final agreement. This agreement has paved the way for China to lift its ban on accepting Boeing planes, as per a report.
China has started notifying domestic airlines and government agencies this week that they may resume deliveries of aircraft manufactured in the U.S. According to Bloomberg News, this decision comes from sources familiar with the matter.
Previously, at least three Boeing jets at the delivery center in China were returned to the U.S. due to tariffs imposed by the Trump administration. As a result, Boeing was planning to resell potentially dozens of aircraft.
U.S. Slashes Reciprocal Tariffs by 115%, Negotiations Continue
Following the agreement on Monday, China and the U.S. have reduced their reciprocal tariffs by a staggering 115%. Both countries aims to reduce the impact of their ongoing trade war and continue fruitful negotiations towards a trade deal.
Two weeks prior, Beijing had declared that Chinese airlines and Boeing had been adversely affected by the tariffs imposed by the Trump administration. Interestingly, China had already granted exemptions for some aerospace equipment parts, including engines and landing gear, before this recent agreement.
China Begins Returning Boeing Aircraft to U.S.
China, being a significant market for Boeing, accounts for about 10% of Boeing’s commercial backlog. Chinese airlines are anticipated to accept 25 out of 30 remaining 737 MAX jets built before 2023 that were previously undelivered. Additionally, four 777 freighter planes are in production for Chinese airlines, according to sources and aircraft tracking database Aviation Flights Group.
One obstacle was seating, as the planes were chosen and purchased by the Chinese airlines. Despite other airlines expressing interest in the returned planes, Boeing has been hesitant to send them elsewhere to cut down high inventory levels.
With this temporary truce, both Boeing and the Chinese aviation sector can look forward to a revival in growth and expansion opportunities. The resumption of Boeing aircraft deliveries to China marks a positive step forward in the aerospace trade between the two countries.
Sources:[1] Bloomberg News[2] Reuters[3] Company Earnings Call[4] Aviation Flights Group
- The U.S. economy and the global finance industry have shown signs of relief as President Trump announced a 90-day tariff pause with China, potentially easing tensions in the ongoing trade war.
- Amidst the ongoing negotiations, the industry of technology, specifically the aerospace sector, stands to benefit significantly from the tariff pause, with China announcing the resumption of Boeing aircraft deliveries.
- Entrepreneurship and business opportunities within the gadgets and smartphones sector may also prosper, as reductions in tariffs could lead to lower production costs and increased exports to China.
- The resumption of Boeing aircraft deliveries to China could shape policy-and-legislation and politics, as both countries work towards achieving a final trade deal and promoting mutual growth.
- General news outlets, such as Bloomberg News and Reuters, will closely monitor the situation and provide updates on any further developments in the U.S.-China trade negotiations and their impact on various industries.
- As the U.S. and China focus on resolving their trade disputes, other nations may take this as an opportunity to strengthen their own industries and markets, particularly in areas of technology and advanced manufacturing, such as the production of aerospace equipment and commercial aircraft.
