Boeing is in the crosshairs of the US-China trade war

Core Viewpoint - President Trump's tariffs on China are negatively impacting Boeing, as China has ordered its airlines to halt deliveries of Boeing planes and parts, leading to a decline in Boeing's stock price [1][9]. Group 1: Impact on Boeing - Boeing's stock fell by 2.4% following reports that China ordered its airlines to stop taking deliveries of Boeing aircraft [1]. - China Southern Airlines has suspended the sale of 10 used Boeing 787-8 Dreamliner planes, which indicates a shift in their purchasing strategy [1][2]. - The airline's decision may be influenced by the 125% tariff on American products, which significantly raises the cost of new Boeing purchases [2]. Group 2: Market Share Concerns - China is a crucial market for Boeing, especially as it competes with Airbus and emerging Chinese manufacturers [3]. - Any restrictions on deliveries could lead to a loss of market share for Boeing, particularly if Chinese airlines turn to Airbus or domestic manufacturers for new orders [8]. - Boeing's 2024 annual report highlighted the potential negative impact of geopolitical tensions on its business in China [6]. Group 3: Future Orders and Deliveries - Boeing expressed concerns that inability to deliver aircraft to Chinese customers could result in reduced deliveries and lower market share [7]. - Major Chinese airlines, such as China Southern and Air China, are among the largest carriers globally, making their purchasing decisions critical for Boeing [7]. - Other international carriers, like Ryanair and Delta, have indicated they might delay Boeing deliveries if tariffs are imposed, further complicating Boeing's market position [9].