In 2025, the US-China trade war escalated: Boeing faces setbacks, Airbus gains, and a buying spree in the US consumer market causes global market upheaval.

Taiwan • Business • 04/21 19:00
In 2025, the US-China trade war escalated: Boeing faces setbacks, Airbus gains, and a buying spree in the US consumer market causes global market upheaval.

In April 2025, the US-China trade war escalated, and Boeing was forced to send back the 737 MAX aircraft intended for China to the United States due to punitive tariffs, which benefited Airbus in the Chinese market. The expectation of high tariffs sparked a buying frenzy among American consumers, resulting in a 1.4% increase in retail sales in March. Global stock markets were volatile, with significant capital movements in Asian stocks. The Chinese stock market showed little reaction, but GDP growth reached 5.4%, surpassing expectations and indicating short-term resilience.

Key Updates

04/22 07:05

Ford has suspended exports of American-made cars to China amid the U.S.-China tariff war, causing its stock price to fall by 1.66%.

Ford Motor Company announced the suspension of exports of several U.S.-made models to China due to the intensifying U.S.-China trade war and China's high tariffs on American-made vehicles. The models affected include the F-150 Raptor, Mustang, Bronco SUV, and Lincoln Navigator. This decision caused Ford's stock price to drop by 1.66% on April 21, 2025, ending at $9.47. Despite halting the export of complete vehicles, Ford continues to export some auto parts to China.

04/22 05:59

The United States levies high tariffs on solar products from four Southeast Asian countries, aimed at cracking down on Chinese companies circumventing country of origin rules.

On April 21, 2025, the U.S. Department of Commerce announced the imposition of anti-dumping and anti-subsidy duties of up to 3,521% on solar products from Cambodia, Malaysia, Thailand, and Vietnam. This action was taken due to allegations that Chinese companies were setting up factories in Southeast Asia to falsify the origin of their products to evade tariffs. This measure is pending a final determination by the U.S. International Trade Commission by June 2. The Vietnamese government has also tightened its regulations on product origin to prevent illegal transshipment, in response to U.S. concerns.

04/22 03:05

In March 2025, U.S. imports of goods from mainland China sharply decreased as the escalation of the trade war resulted in several major commodities dropping to zero.

In March 2025, China completely halted imports of liquefied natural gas and wheat from the United States, and imports of commodities like cotton and corn were significantly reduced due to the escalation of the China-US trade war, as both sides imposed high tariffs on each other. China turned to countries like Brazil for agricultural product supplies. Ford suspended the export of several car models to China due to China's imposition of tariffs as high as 150% on American cars. This situation highlights the severe impact of the China-US tariff war on bilateral trade.

04/21 23:00

Trump's Tariff Policy for 2025 Hits U.S. Toy Industry: Tariffs on Imported Chinese Toys Reach as High as 145%, Supply Chain Crisis During Christmas Season

In early 2025, after Donald Trump returned to the White House, he imposed high tariffs on Chinese products, with the toy industry being the hardest hit. The import tariffs on toys made in China increased to 145%, causing a spike in U.S. import costs and chaos in the supply chain. Industry experts warn that if the situation remains unchanged, the Christmas shopping season could be severely affected, and retailers such as Target and Walmart might encounter inventory shortages.

04/21 22:31

In 2025, U.S. tariff policies trigger a capital shift: Foreign capital flows into Japanese government bonds, while the Japanese insurance industry sells off against the trend.

In March 2025, Trump administration's tariff policy caused global market fluctuations, leading international funds to pour into Japanese government bonds for safety. That month, foreign investors net bought over 10-year Japanese government bonds totaling 2.18 trillion yen, an all-time high. At the same time, Japanese insurance companies sold 645.8 billion yen of long-term government bonds due to asset adjustments ahead of the fiscal year-end. The yield on 30-year Japanese government bonds climbed to its highest point since 2006, highlighting shifts in market supply and demand and the contrasting reactions to market risk between foreign investors and domestic institutions.

04/21 19:00

In 2025, the US-China trade war escalated: Boeing faces setbacks, Airbus gains, and a buying spree in the US consumer market causes global market upheaval.

In April 2025, the US-China trade war escalated, and Boeing was forced to send back the 737 MAX aircraft intended for China to the United States due to punitive tariffs, which benefited Airbus in the Chinese market. The expectation of high tariffs sparked a buying frenzy among American consumers, resulting in a 1.4% increase in retail sales in March. Global stock markets were volatile, with significant capital movements in Asian stocks. The Chinese stock market showed little reaction, but GDP growth reached 5.4%, surpassing expectations and indicating short-term resilience.

04/21 15:02

Changes in China-US Trade Policies: Xiamen Airlines Sends Back Boeing 737 MAX; Boeing Seeks Malaysia Airlines to Take Over the Aircraft

In April 2025, changes in trade policies between China and the United States led to the return of two Boeing 737 MAX jets, originally scheduled for delivery to Xiamen Airlines, to Seattle, Washington. This move marked one of the first instances of "returned aircraft" amid the escalating trade war between China and the US. Boeing is negotiating a resale plan with Malaysia Airlines, indicating that the aviation manufacturing industry's long-standing reliance on a duty-free delivery system is facing challenges, and future aircraft delivery plans are filled with uncertainty.

04/21 02:58

Taiwan's Ministry of Economic Affairs 2025 Global Procurement Conference: Buyers from 48 Countries to Gather, with Estimated Business Opportunities of $500 Million.

Taiwan's Ministry of Economic Affairs held the "2025 Global Procurement Conference" on April 23, 2025, attracting 471 international buyers from 48 countries to negotiate with 1,805 Taiwanese companies, with an estimated business opportunity of $500 million. The conference covered 12 major industries, setting a new record for scale. Due to the United States' 32% tariff policy on Taiwan, 36 out of 128 American buyers canceled their trips to Taiwan, demonstrating the impact of trade policies on business activities. The Ministry of Economic Affairs invited buyers from other countries through its overseas offices to fill the gap.

04/21 00:54

Trump's Tariff Policies Severely Impact Buick: The Century-Old American Automotive Brand Faces the Challenge of Up to 47.5% Import Tariffs

The Trump administration reinitiated high tariffs on imported cars and components from China and South Korea in early 2025, impacting General Motors' Buick brand. Buick's three SUV models, the Envista, Encore GX, and Envision, are subject to tariffs of 27.5% and 47.5%, respectively, due to being manufactured in South Korea and China, resulting in increased costs and higher prices. This could weaken their competitiveness in the U.S. market, despite a 39% increase in sales in the first quarter of 2024. General Motors is considering relocating some production to the U.S. to lessen the impact but is facing capacity constraints.

04/20 22:55

US tariffs on Chinese goods rise to 145%, severely affecting container shipping; Nintendo resumes pre-orders for the new Switch and shifts its production to Vietnam.

In April 2025, the Trump administration in the United States increased tariffs on Chinese imports to 145%, resulting in a significant drop in the volume of containers exported from China to the U.S. In March, container transport volume decreased by 11%, and booking volume dropped by 64% in the first week of April. In response to the temporary suspension of the U.S. reciprocal tariff policy, Nintendo resumed U.S. pre-orders for the Switch 2 on April 24 and prioritized supplying the U.S. market with products manufactured in Vietnam. U.S.-Japan trade negotiations progressed simultaneously, with Japan proposing to expand imports of American rice and relax automobile inspection standards to seek an exemption from the 24% reciprocal tariff.

Boeing Faces Delivery Crisis, Airbus Market Share Rises

Boeing's operations in the Chinese market are at a critical recovery phase but have been hit again by the US-China tariff war. The 737 MAX aircraft, originally scheduled for delivery to China's Xiamen Airlines, was painted and parked at the Zhoushan delivery center but was forced to fly back to Boeing's base in Seattle due to punitive tariffs of up to 125% imposed by China on US imports. According to Reuters, this is not an isolated case, with at least three 737 MAX 8 aircraft being recalled.

In its fourth-quarter 2024 financial report, Boeing warned that the delivery plans for the Chinese market are "highly uncertain." Currently, China's three major airline groups had planned to receive nearly 180 Boeing aircraft between 2025 and 2027, but these orders now face the risk of delays or cancellations. Boeing has long relied on the Chinese market for over 10% of its revenue, and if Chinese airlines turn to European suppliers, it will cause a structural impact on its global market share.

According to Simple Flying, Boeing currently holds about 40% of the global market share, while Airbus holds 60%. In the worst-case scenario, Airbus's market share could rise to 75% to 80%. Analysts point out that the retaliatory tariffs faced by Boeing are much higher than those for Airbus, further weakening its competitiveness in the international market.

US Consumer Market Sees Buying Frenzy, Short-term Retail Data Shines

After the Trump administration announced tariffs of up to 145% and even 245% on Chinese goods, US consumers showed significant "panic buying" behavior. Data from the US Department of Commerce shows that retail sales in March 2025 rose by 1.4% from the previous month, the largest increase since January 2023. Automobile sales grew by 5.3%, electronics and appliances rose by 2.4% and 3.3% respectively, and dining consumption also increased by 1.8%.

In places like Chicago and Virginia, consumers are snapping up imported goods such as iPhones, Samsung TVs, washing machines, and cars, fearing future price hikes. Sales on platforms for second-hand and refurbished equipment like Back Market have tripled, reflecting increased consumer sensitivity to prices. Federal Reserve Chairman Powell warned that this buying frenzy could trigger "higher inflation and slower growth," potentially leading to stagflation risks.

Joanne Hsu, director of the University of Michigan survey, pointed out that this phenomenon is similar to the early stages of the 2018 trade war when consumers hoarded appliances to avoid tariff costs. Analysts generally believe that this consumer boom may be a short-term phenomenon, with potential subsequent consumer fatigue and economic slowdown.

Global Stock Markets Volatile, Asian Stock Funds Flow Dramatically

The escalation of the trade war has caused global market turmoil. US stocks, bonds, and the dollar have all fallen simultaneously, with investor risk aversion rising and gold prices breaking through $3,400 per ounce. In Asia, capital flows have shown significant divergence. According to statistics from China Trust Investment, last week saw a net outflow of $3.5 billion from emerging Asian stock markets, with Taiwan stocks being oversold by $2.29 billion, and Indonesia and South Korea seeing outflows of $1.26 billion and $1 billion respectively.

However, Indian and Philippine stock markets have attracted capital inflows against the trend, with India receiving $1.26 billion in buying in a single week, and the stock market rising by 4.52%. This indicates that market funds are seeking relatively stable and lower policy risk investment targets.

China's Economic Data Shines Short-term, Market Reaction Tepid

Despite the US imposing tariffs of up to 245% on Chinese goods as of mid-April, the Chinese stock market has reacted relatively tepidly. The CSI 300 index rose by 0.6% last week. Data released by China's National Bureau of Statistics shows that GDP in the first quarter of 2025 increased by 5.4% year-on-year, higher than the market expectation of 5.2%. The annual growth rate of exports in March turned positive from -3.0% to 12.4%, retail sales increased by 5.9% year-on-year, and industrial production grew by 7.7%.

Analysts point out that this strong data may result from companies and overseas buyers placing orders in advance before the tariffs were implemented. UBS and Goldman Sachs both predict that China's annual GDP growth may slow to 3.4%, and once export momentum fades, the impact of tariffs will gradually become apparent.

The Chinese government has stated that it will lower reserve requirements and interest rates at an appropriate time and promote high-tech investment and policies to replace old with new to stimulate domestic demand. The high-tech industry's contribution to GDP is estimated to reach 24 trillion yuan, accounting for 16.8%, becoming a key focus for future economic support.

References

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