The president’s move to target $50bn worth of Chinese imports for additional duties of 25 percent includes parts for planes, printed circuit boards, light emitting diodes and optical fibers, according to a list by the Office of the United States Trade Representative.
It’s too early to tell which manufacturers will pass higher costs on to customers or seek cheaper suppliers outside China, should the tariffs take effect in three weeks’ time. U.S. President Donald Trump has said the goal is to punish Chinese companies for intellectual property theft, a sensitive issue as the world’s No. 2 economy makes the transition from the world’s low-cost assembler of devices like Apple Inc.’s iPhone to an innovator that makes its own chips and components.
Chicago-based Boeing Co., the world’s largest planemaker, said it’s assessing the effects on its supply chain of Trump’s tariffs and China’s reciprocal action.
The planemaker, which counted on China for about $12bn in revenue last year, also said in an emailed statement that it is pushing for the countries to settle. “We will continue to engage with leaders in both countries to urge a productive dialogue to resolve trade differences, highlighting the mutual economic benefits of a strong and prosperous aerospace industry," Boeing said.
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