Boeing concerned over possible damage to the international supply chain by US- China trade war

Boeing, the leading US aerospace and defence supplier has warned about potential damage of the growing US-China trade row. 

"Aerospace thrives on free and open trade," said chief executive of Boeing Dennis Muilenburg. "The aerospace sector drives economic benefits globally," he added.

Like many end-users, he was also of the view that tariffs on steel and aluminium could push up costs for aircraft manufacturers. "We are concerned it could affect supply chain costs - but those supply chains are flowing in both directions [between China and the US], it is an intricate network around the world."

Boeing is now looking at finding  "alternative solutions" to trade disputes while both the US and China are imposing tariffs on each other's goods, said Mr Muilenburg.Speaking ahead of this week's Farnborough Airshow, Mr Muilenburg urged White House to take a note of his firm's arguments.

"We engaged very much with both governments [in China and the US," he said, "our voice is being heard." He was optimistic that there would be a "good resolution" to the disputes.

The US imposed $34bn tariffs on Chinese goods. In response, China introduced equivalent tariffs on US food product imports. The country has also threatened to to impose tariffs on a further $200bn of Chinese import. This might encourage further retaliation from China.

Mr Muilenburg said that Boeing has not yet felt the impact of any tariffs on its business, but is concerned about the future effects brought about by retaliatory actions. Mr Muilenburg also said that Beijing is aware of the need to expand their aerospace capability to drive their growth.

"We understand their long-term aim to be a global competitor. The idea of co-operation, collaboration and competition in China - this is the business model - it's not new."