Leeham News and Analysis
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Leeham News and Analysis
- China bans Boeing, US parts imports in tariff war April 15, 2025
- Boeing welcomes COMAC competition as Asia-Pacific demand soars April 15, 2025
- How good is the C929? April 14, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 17. April 11, 2025
- Uncertainty plagues airline, aerospace, lessor industries over tariffs April 10, 2025
China bans Boeing, US parts imports in tariff war
April 15, 2025, © Leeham News: It was inevitable: China has banned its airlines from accepting deliveries of Boeing airplanes.
The move is in retaliation against President Donald Trump’s boosting tariffs on Chinese goods to 145%. Beijing placed retaliatory tariffs on US goods to 125%. During the first Trump administration, the president placed tariffs of 25% on Chinese goods imported to the US. Beijing has allowed delivery of very few Boeing jets since then.
Illustration of many of the systems and components COMAC sources for its C919 jet. The smaller C909 regional jet is similarly sourced. Credit: Airframer.com.
The move once more blocks Boeing from the world’s second biggest aviation trade market. Additionally, Beijing blocked the import of US-made parts, according to Bloomberg News, which first reported the actions.
Uncertainty plagues airline, aerospace, lessor industries over tariffs
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By Scott Hamilton
April 10, 2025, © Leeham News, Seattle: The airline and aerospace industries are plagued by uncertainty over the global tariffs announced by US President Donald Trump on April 2. The 90-day pause on nearly all tariffs announced yesterday doesn’t resolve the uncertainties. For the moment, they are only postponed.
Airbus’s A320 production plant in Hamburg, Germany. Credit: Leeham News.
Airframe and engine manufacturers, suppliers of components feeding them, and Buyer Furnished Equipment (BFE) directly to the airlines, lessors, aftermarket maintenance companies, and freighter conversion firms have many questions and no answers in chaos following Trump’s global tariff scheme.
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Consider the unknowns:
- Will Trump tax the entire value of airplanes, engines, and components imported into the United States or just the foreign content? There is no guidance yet.
- Will other jurisdictions, notably the European Union, announce reciprocal tariffs? This is unknown because the Trump Administration hasn’t clarified what will be taxed.
- How will aircraft leased by non-US lessors be treated when US airlines are the customers? How will US lessors leasing to non-US airlines be treated? No answers.
- Contracts between lessors, airlines, Boeing, and Airbus don’t specifically address tariffs. Some airlines say they won’t pay tariffs because the contracts are silent. However, Boeing thinks there is a way to pass tariffs along. Airbus probably does, too.
- Over the last weekend, US-based supplier Howmet informed its customers it reserves the right to exercise the force majeure clause in its contracts to give it flexibility to suspend deliveries because of the tariffs. Other suppliers, including some engine companies, are following suit.
- At least one supplier has already billed some customers for delivered goods, including a tariff tax line item on the invoice.
- How will various jurisdictions treat aircraft converted into freighters with a mix of US and foreign content? There is no answer.
The US-based law firm Vedder Price issued its opinion and guidance on Tuesday on some issues.