Bombardier stands to benefit from Chinese tariffs on U.S., says aerospace analyst
Chinese retaliatory tariffs on U.S. products are expected to have mixed impacts on Canada's agriculture sector but an aerospace analyst says Bombardier stands to gain from duties against U.S. small aircraft.
Richard Aboulafia of the Teal Group says a 25 per cent tariff on aircraft weighing between 15 and 45 tonnes could prompt Chinese buyers to switch to Bombardier Inc. Global business jets from planes made by U.S. producer Gulfsteam.
The result could be Bombardier gaining a bigger piece of the Chinese market, which accounts for about five per cent of global business jet sales.
China says it imposed retaliatory tariffs after Washington imposed 25 per cent duties on US$34 billion of imports from China on Friday.
Aboulafia calls the Chinese action ``a shot across the bow'' to the American aerospace sector by targeting lower volume airplanes.
An escalation could target Boeing and its popular 737 Max, which would help Europe's Airbus and its control of the C Series.