Boeing Co. (BA) - Get The Boeing Company Report shares fell more than 4% in Wednesday morning trading after China said it would put a 25% tariff on airplanes in response to proposed tariffs by President Donald Trump's administration on $50 billion worth of imports, including medicines, chemicals and consumer electronics.
Boeing shares were down 4.55% in the first minutes of trading, changing hands at $316.06.
China said it will impose tariffs on short-haul commercial aircraft, according to Bloomberg, such as the Boeing 737 narrowbody family. China's Ministry of Commerce said the affected planes weigh between 15,000 and 45,000 kilograms, or 33,069 and 99,208 lbs.
China is Boeing's biggest export market and the 737 is its biggest selling product. The country is expected to become surpass the U.S. as the world's biggest buyer of aircrafts by as early as 2022.
China on Wednesday announced reciprocal tariffs on 106 U.S. goods including cars, soybeans, chemicals and whisky on $50 billion of worth of Chinese imports. The Ministry of Commerce did not say when the new tariffs would take effect.
The Trump administration on Tuesday announced tariffs on $50 billion worth of Chinese imports, including medicines, chemicals and consumer electronics.
Beijing vowed proportional retaliation to plans by the U.S. for a 25% tariff on 1,333 products, with China's Ministry of Commerce on Wednesday saying it would immediately appeal the actions to the World Trade Organization. The tariffs are in response to decades of state-backed intellectual property theft by China, which President Trump said was "probably ... in the neighborhood of $200 billion to $300 billion."
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Further analysis of a market under increasing stress.