Newsletter

The Tariff Trade War Continues

A note from our President Dagada; 

The trade conflict has led to China significantly increasing its retaliatory tariffs on U.S. goods, making the cost of U.S.-made aircraft and parts substantially higher. This has created a situation where Chinese airlines are being forced to reconsider their purchasing decisions. The order to cease Boeing deliveries comes amid rising tariff rates. Reports indicate that China has increased retaliatory tariffs to 125% which is a direct response to the tariffs that the Trump administration has placed on goods coming from China. Some of those tariffs from the United States, reach as high as 145%. Boeing's position in the Chinese market is crucial. China represents a substantial portion of the global market for commercial aircraft. Any disruption in this relationship has the potential to cause major financial repercussions for the American aviation company. Beyond the immediate impact on Boeing, this trade dispute raises broader concerns about the future of U.S.-China economic relations. The aviation industry is just one sector being affected by the ongoing conflict, and the potential for further escalation remains a significant concern. Additionally, the move from China to halt the acceptance of Boeing aircrafts, also includes the halting of purchases of aircraft related equipment and parts from U.S. companies. This will affect many more U.S. based companies than simply Boeing. There’s also a potential shift in the Trump administration's trade policy, specifically regarding auto tariffs. Reports indicate that the president is considering a pause on the implementation of new tariffs on imported vehicles.This possible change in direction comes after months of escalating trade tensions, particularly with key trading partners like the European Union and Japan. The auto industry, both domestic and international, has been closely watching these developments, as tariffs could significantly impact production costs and consumer prices. Simultaneously, the White House is moving forward with a rescission package. This package is designed to cut federal spending, with the aim of reducing the national deficit. Rescission packages allow the president to propose the cancellation of previously appropriated funds. The details of this package are still emerging, but it's expected to target various government programs and agencies. 

                                                 Arise South Africa, Arise.