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Trump unveils tariff plan on Chinese aircraft imports
Aircraft, jet engines and helicopters made in China are among 1,300 product categories that will face a 25% tariff if imported into the USA, the Trump Administration proposed on 3 April. (www.flightglobal.com) Altro...Sort type: [Top] [Newest]
Such effect will only force China to better develop and improve their own product. . . . and a better, more advanced Chinese airplane may prove as the third major player for this worldwide industry.
Really DUMB move by Trump. How many Chinese made aircraft, jet engines or helicopters are sold in the USA? I bet the answer is ZERO - meanwhile China is the BIGGEST market for Boeing commercial airplanes and Boeing is the biggest and most successful US exporter. Also Boeing incorporates parts made in China into their aircraft - this move will just increase Boeing's costs vis a vis Airbus, Bombardier and Embraer. Far from being a "master of 3D chess" and "the art of the deal" Trump is turning out to be the biggest moron to ever occupy the Oval office. He makes George W Bush look like Stephen Hawkings
So, Boeing can start making those Chinese parts in the US...Unions win! (where are my drums, I need to start beating on them ;-)
https://www.youtube.com/watch?v=WXh1tW16V-8
https://www.youtube.com/watch?v=WXh1tW16V-8
You missed the part where I said China is Boeings BIGGEST market (bigger than the USA!) - 1/3 OF Boeing aircraft are sold to China - this market will now dry up. This is not a win for US workers
I did not miss that. However, if the over all gain to the US is offset by the loss of some Boeing labor? And? This is nothing more than a nothing. It is simply a game. I do not give a rip about some guy in Seattle as long as the price of MY purchases goes down. That is simply how I, and most voters think.
My family has played the game for three generations now. Fighting with taxes, tariff's, EPA and Unions...We found that the easiest solution was to get rid of all US facilities and simply use 100% foreign labor and banking (all assets in the South East). Then salary ourselves from US banks...Boeing cant due to their number of contracts with the Fed. Govt (Military). Boeing can simply 'spin off' a company, incorporate in a tax friendly nation and build a facility in China someplace. There, problem solved.
Two perfect examples of the exact same strategy are Carnival and Royal Caribbean. The US can invoke any tariff or tax that they want. The ships are "flagged" typically from island nations where the US laws simply do not matter (labor and Min. Wage laws for starters). Smart business works around the Government, not with the Government. In the end, the consumer will always pay the price for the Government getting involved...always. As a note, the only RC boat that paid US wages went.
Heck, even with our families aircraft is is almost always serviced in South America...as most large US carriers do...for a reason.
My family has played the game for three generations now. Fighting with taxes, tariff's, EPA and Unions...We found that the easiest solution was to get rid of all US facilities and simply use 100% foreign labor and banking (all assets in the South East). Then salary ourselves from US banks...Boeing cant due to their number of contracts with the Fed. Govt (Military). Boeing can simply 'spin off' a company, incorporate in a tax friendly nation and build a facility in China someplace. There, problem solved.
Two perfect examples of the exact same strategy are Carnival and Royal Caribbean. The US can invoke any tariff or tax that they want. The ships are "flagged" typically from island nations where the US laws simply do not matter (labor and Min. Wage laws for starters). Smart business works around the Government, not with the Government. In the end, the consumer will always pay the price for the Government getting involved...always. As a note, the only RC boat that paid US wages went.
Heck, even with our families aircraft is is almost always serviced in South America...as most large US carriers do...for a reason.
The plains are really still in the "Development" stage and it will be hard to say definitively that the US Market isn't at risk. If you eliminate a competitor, costs go up. The fallout over this ego driven trade war is not going to be small... and with China's reciprocal 25% tariff on aircraft, I wouldn't want to be sitting with a pile of Boeing stock right now. They have over 300 orders from Chinese companies, and it won't be long before those start getting cancelled and switched to AirBus or ... dare I say it, Bombardier!