Boeing worries about the impact of potential US-China trade war: Anticipates job cuts

President Trump is continuing to keep several countries on toes, especially China, with imported aluminium and steel tariffs and at the same time, keeping workers like Charles Cesmat, a parts manager at a Boeing plant in Renton, Washington in dismay.

Boeing is perhaps one of those American companies that ride on a super healthy relationship with China. It ships one of every four planes that it assembles to China. So, every time Mr. President slaps Beijing with a new set of tariffs, Mr. Cesmat winces.

“I’m concerned a potential trade war could affect work for our members and work for me,” Mr. Cesmat said. “Thousands of people’s jobs rely on a working relationship with China.”

According to a Seattle consulting firm, Boeing’s trade with China supports 40 per cent of all jobs in Washington and therefore, the US’s spat with Beijing can discomfit the state’s juggernaut aerospace industry, as a result, and can also put the livelihoods of workers and business owners at risk.

President of Community Attributes Inc., Chris Mefford also thinks that trade issues are high on people’s minds. “They are wondering and worrying how it’s going to play out.”

China, on the other hand, is projected to buy more than 7,000 planes worth US$1 trillion in the next 20 years, which is certainly more than Boeing’s current backlog for the entire world. But if the tariff pressure increases then China could choose to award more work to Europe’s Airbus, says the company in distress.

Beijing has also warned US to retaliate with high tariffs on some airplanes, including older 737 models made in the Renton factory where Cesmat works.

Kim Schrier, in this regard says, “China knew exactly where to target.” According to him, “They’re targeting districts where this could be problematic for Republicans.”