- Pres. Trump's tariff action and CEO Dennis Muilenburg's cozy relationship with the president has set Boeing (BA -1.3%) on a collision course with China, according to Bloomberg columnist David Fickling.
- There's the obvious risk of increased costs - ~80% of an aircraft's weight is aluminum - but Boeing's 3.5% drop yesterday after Trump announced his tariff plans "should be a warning sign that, beyond the current clear skies, a storm is building," Fickling writes.
- Of the 10 U.S. businesses with more than $5B of sales in China, three (Apple (NASDAQ:AAPL), Las Vegas Sands and Procter & Gamble) are dependent on consumer spending, and six are in the semiconductor and tech businesses that China wants to encourage domestically, so they should be somewhat safe from government action - "Against that backdrop, Boeing stands out like a sore thumb."
- "Should the current tit-for-tat over steel and aluminum spiral toward a trade war, few firms will find themselves in a more precarious position than Boeing," Fickling concludes.
- Now read: Unlocking The Airbus A380 Success
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