Tariffs on Boeing...?

[Great Lakes Airship]

With tariffs causing turbulence in trade between Canada and the United States, I believe we’ll soon see more people adopting a "Buy Canadian" mindset, or at least a “Don’t Buy American” attitude. This sentiment will likely reach the higher-ups at Big Red. If the tariffs on Boeing planes remain in place, do you think they might start eyeing the A330neo or another aircraft instead? Canadians have been canceling trips down south for a while, and travel demand has pulled back. Would it be too far-fetched to think that public sentiment here could push the government to impose restrictions on Boeing planes? Thoughts?

[fish4life]

With tariffs causing turbulence in trade between Canada and the United States, I believe we’ll soon see more people adopting a "Buy Canadian" mindset, or at least a “Don’t Buy American” attitude. This sentiment will likely reach the higher-ups at Big Red. If the tariffs on Boeing planes remain in place, do you think they might start eyeing the A330neo or another aircraft instead? Canadians have been canceling trips down south for a while, and travel demand has pulled back. Would it be too far-fetched to think that public sentiment here could push the government to impose restrictions on Boeing planes? Thoughts?

The A220 employs a lot of people in Canada but it’s also very much built in the USA as well.

Boeing employs a bunch of people in Canada that work on parts for all different aircraft they make so there isn’t much of a way to hurt one company without shooting yourself in the foot.

[goingnowherefast]

People, including management higher-ups are seeing the US as an unreliable and unpredictable place to do business.

Our government doesn't need to do as much as you'd think. The Americans are shooting themselves in the foot.

Boeing plane parts made in Canada, or Mexico, or Europe, or China get shipped to the US for final assembly in Charleston or Seattle. Those plane parts that Boeing imports are now subject to a tarrif of 10%...wait, 20%, no 25%, no 84%, ugh 125%...145%. Maybe next week it'll be 10% again. Boeing is going to be paying these tarrifs and will ensure there's sufficient buffer in their sales contracts to absorb what unpredictability they can. Prices will go up, Boeing planes will be less competitive. I'm sure there will be clauses in the contract in the event part costs become too astronomically expensive for Boeing to absorb.

No business person wants to put that level of uncertainty into their business. They can't predict or plan anything. So let's just buy an Airbus plane instead. EU is being a reliable and predictable place with which to do business.

Now the old 777 fleet is replaced with a bunch of A350s

[rudder]

People, including management higher-ups are seeing the US as an unreliable and unpredictable place to do business.

Our government doesn't need to do as much as you'd think. The Americans are shooting themselves in the foot.

Boeing plane parts made in Canada, or Mexico, or Europe, or China get shipped to the US for final assembly in Charleston or Seattle. Those plane parts that Boeing imports are now subject to a tarrif of 10%...wait, 20%, no 25%, no 84%, ugh 125%...145%. Maybe next week it'll be 10% again. Boeing is going to be paying these tarrifs and will ensure there's sufficient buffer in their sales contracts to absorb what unpredictability they can. Prices will go up, Boeing planes will be less competitive. I'm sure there will be clauses in the contract in the event part costs become too astronomically expensive for Boeing to absorb.

No business person wants to put that level of uncertainty into their business. They can't predict or plan anything. So let's just buy an Airbus plane instead. EU is being a reliable and predictable place with which to do business.

Now the old 777 fleet is replaced with a bunch of A350s

The carve outs for tariff exemption have begun. Boeing will likely get their carve out as well (as long as there is no trace of DEI practices remaining at Boeing).

Welcome to Trumponomics 101.

[goingnowherefast]

Good point. However, it's still to my point that it's a completely unpredictable environment in which to do business.

I did forgot to mention the Chinese export controls they're putting on exotic metals and minerals ("rare earth"). What these export controls turn into? I don't know, nobody knows. Maybe they'll mean nothing, maybe it's a ban of certain elements to the US.

Suddenly GE can't make turbine blades. Rockwell-Collins can't make avionics.

EU isn't affected, so Rolls Royce continues to power the A350s rolling off the line.

My point is it's a huge mess. Everyone loses, but the biggest loser is the US, American companies and those that try to do business with American companies.

What can Canadians and Canadian businesses do? Conduct business with more reliable and trustworthy partners. AKA, Airbus in the EU.

[cdnavater]

Good point. However, it's still to my point that it's a completely unpredictable environment in which to do business.

I did forgot to mention the Chinese export controls they're putting on exotic metals and minerals ("rare earth"). What these export controls turn into? I don't know, nobody knows. Maybe they'll mean nothing, maybe it's a ban of certain elements to the US.

Suddenly GE can't make turbine blades. Rockwell-Collins can't make avionics.

EU isn't affected, so Rolls Royce continues to power the A350s rolling off the line.

My point is it's a huge mess. Everyone loses, but the biggest loser is the US, American companies and those that try to do business with American companies.

What can Canadians and Canadian businesses do? Conduct business with more reliable and trustworthy partners. AKA, Airbus in the EU.

Maybe a few rare earth controls of our own!