Airlines and Boeing China both suffer from import duties

China’s Ministry of Commerce has remarked for the first time on the impact of import tariffs on the aviation industry, following the forced return of three Boeing jets to the United States from China.

“We have noted the reports on this. China and the United States have had long-standing, mutually beneficial cooperation in the civil aviation industry, which has considerably boosted bilateral commerce and people-to-people contacts,” a representative for China’s Ministry of Commerce stated on April 29.

Airlines and Boeing China both suffer from import duties

US import taxes have created significant inconvenience

US import tariffs have significantly impacted the worldwide industrial sector and supply chain, as well as the international air transport business. Many firms have been unable to conduct normal trade and investment activities, resulting in significant losses for Chinese airlines and Boeing.

China’s Ministry of Commerce stated that it continues to encourage bilateral business cooperation and expects that the United States would listen to the business community’s views in order to build a stable and predictable trade and investment environment.

Boeing Factory in China

Since April 19, three planes from Boeing’s Chinese facility have been returned to Seattle rather than delivered to customers. According to Boeing, numerous customers have stated that they are unable to take receipt of new planes due to import duties. Boeing is so planning to resell dozens of the jets.

Earlier, Bloomberg reported on April 15 that Beijing has directed its airlines to halt all procurement of aircraft equipment and components from the US. This decision is said to be in retaliation to the US government’s 145% tax on Chinese imports. Beijing also placed a retaliation tariff of 125% on US goods.

Concerns over the implications of the trade war

China has expressed alarm about the impact of the trade war. Many businesses claim they have not yet been harmed by the 125% tariff on items imported from the United States into China. Others claim that Chinese officials have asked them to produce a list of vital commodities that they must import to avoid tariffs.

Last week, French aviation engine manufacturer Safran announced that it had received notice from Beijing of tariff exemptions for certain components, including engines and landing gear.