President Trump's threat to escalate the trade war between the US and China could create another headache for Boeing

Reuters

A Boeing 737 Max 8.

• On Sunday, President Donald Trump tweeted that the US would raise tariffs on Chinese goods and impose new ones in the near future, raising the prospect of retaliatory tariffs from China.
• Additional tariffs could cause trouble for Boeing, which sells aircraft to Chinese airlines like Air China, China Airlines, and China Cargo Airlines.
• In an April 25 note to investors, JPMorgan mentioned trade tensions as a possible threat to Boeing's stock price.
• From 2014 through 2018, Boeing received 425 orders from Chinese airlines, 8% of its total orders during that period.
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Boeing has had a difficult seven months, and President Donald Trump's tweet from Sunday threatening increased tariffs on Chinese goods raises the prospect of additional challenges for the aerospace manufacturer.

The company has come under fire following two deadly crashes involving its 737 Max aircraft. In October, a Lion Air flight crashed and killed all 189 people on board, and in March, an Ethiopian Airlines flight crashed and killed all 157 people on board.

The fallout from the crashes has reportedly cost Boeing at least $1 billion, and the 737 Max has been grounded in many countries since March as media reports have raised questions about how Boeing developed and communicated stabilization technology that may have played a role in both crashes.

Read more: Boeing admits that it made a key alert system linked to faulty sensors optional on 737 MAX planes

Now, Boeing faces the possibility of new headwinds outside of its control. On Sunday, President Donald Trump tweeted that the US would raise tariffs from 10% to 25% on $200 billion of Chinese goods and impose a 25% tariff on $325 billion of Chinese goods in the near future, raising the prospect of retaliatory tariffs from China.

So far, the US has placed tariffs on $250 billion of Chinese goods, and China has placed tariffs on $110 billion of American goods. In its 2018 earnings report, Boeing said the tariffs apply to some of the parts it uses, but the company did not specify the extra costs the tariffs have imposed. Boeing did not immediately respond to a request for comment.

Additional tariffs could cause trouble for Boeing, which sells aircraft to Chinese airlines like Air China, China Airlines, and China Cargo Airlines. From 2014 through 2018, Boeing received 425 orders from Chinese customers, 8% of its total orders during that period.

In an April 25 note to investors, JPMorgan mentioned trade tensions as a possible threat to Boeing's stock price.

"Escalation of global trade tensions could weigh on investors' perception of underlying aerospace fundamentals," the investment bank said.

• Read more:
• Boeing reportedly sent people around the world to reassure airlines after the Lion Air 737 Max crash, even convincing the airline to keep its order for the plane
• Boeing reportedly knew of the software error on the 737 Max for a year before telling airlines and regulators
• Boeing's CEO is beefing up his legal team as it braces for 737 Max crash lawsuits
• A critical sensor linked to the 2 fatal Boeing 737 Max crashes had been flagged to the FAA more than 200 times, report says

Get the latest Boeing stock price here.