According to Bloomberg, Boeing Co. (NYSE: BA) shares fell on Tuesday after China implemented tariffs on American-made aircraft in a trade war with U.S. President Donald Trump. China will place a 25 percent tariff on certain U.S. aircraft, which will affect Boeing’s narrowbody models, according to documents from China’s Ministry of Commerce and the U.S. manufacturer.
China’s response to the elevating trade war tension between the U.S. will put a heavy tariff on aircrafts in a certain weight range, which affects the Boeing 737s. The 737s along with Airbus SE’s are likely to account for three quarters of the global market over the next two decades, according to Boeing.
The tariff will specifically affect empty aircrafts weighing between 15 to 45 tonnes, which Boeing says most of its 737s fall within the range, which make Boeing face up to as much as a 30 percent tariff.
The tariffs are implemented will significantly affect the U.S., as the country exported $15 billion of aircraft to China in 2016, equaling just as much as soybean reports, which is also being targeted in the tariffs, according to the U.S. trade data.
Boeing’s Beijing spokesperson declined to comment on the impact of the tariffs, according to Reuters.
China’s tariffs will also affect various other agricultural products and automobiles, including hybrid electric vehicles, totaling up to $50 billion in Chinese imports, according to the document.