- Boeing (BA -3.6%) shares appear headed for their third straight loss, as investors fear the company is a prime target for retaliation if Pres. Trump imposes a $60B tariff on Chinese goods; shares have lost 7.5% so far this week.
- Analysts say no major U.S. company may have as much to lose in a trade war with China as Boeing, which announced a $37B order for 300 planes from China while Trump was in Beijing last year; also, the company has estimated that China will buy as much as $1T of aircraft over the next 20 years.
- "Trump's trigger-happy use of tariffs against the second-largest economy in the world would quickly backfire on the U.S.," says Bernard Baumohl, chief global economist at the Economic Outlook Group. "China can shut down current imports of American-made planes, cellphones, nuclear reactors, autos, financial services, agricultural products and crude oil as well as refined products."
- Boeing has contributed 24% of the gain in the Dow Jones average since December 2016, with more than 1,200 points of the Dow's rise coming directly from the 117% jump in its shares.
- Now read: Aircraft Sales: .3B For Boeing
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