President Donald Trump recently imposed increased tariffs on steel and aluminum imports and is considering further tariffs and investment restrictions against China. Last year Boeing announced a $37 billion order for planes from China, with the potential for $1 trillion more in business over the next 20 years.
President Trump’s policies led Boeing officials to fear the future of their international business.
“Boeing does business with a lot of governments across the world, and if the U.S. policy now is going to be combative instead of conciliatory against everybody in the world, it’s going to make Boeing’s business much more difficult,” Boris Schlossberg, managing director of FX strategy at BK Asset Management, told CNBC. “I would stand aside for now until I see how policy checks out because it could get very ugly, very fast.”
Boeing shares broke below their 50-day moving average March 13 for the first time since May 2017.
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