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China fires warning with 25% tariff on Boeing planes

Boeing’s popular 737 aircraft appear targeted by part of the USD 50 billion in tariffs China announced Wednesday amid an escalating trade dispute with the U.S.

For Boeing, the tariff signals a significant charge on one of its largest and growing markets.

Robert Mann, an airline-industry consultant and former airline executive at R.W. Mann and Co., said the trade dispute could hurt airlines more than manufacturers by discouraging business travel along routes that already have too many flights.

“Whether it’s a trade war or more physical than that, it deters the demand for travel,” Mann said. “There’s already too much capacity chasing too few passengers at sufficient prices. This will just detract from the existing insufficient demand.”

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