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Boeing Dreamliner 787 Air China planes sit on the production line at the company’s final assembly facility in North Charleston, South Carolina.
Travis Dove | Bloomberg | Getty Images
Boeing shares fell more than 3% in premarket trading Monday after the editor of Chinese newspaper Global Times speculated that the country may single out the aircraft maker in the trade war with the U.S.
“China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically,” Hu Xijin, editor-in-chief of the Global Times, said in a tweet. The Global Times is a state-affiliated organization, with close connections to the government. The outlet tends to be more outspoken in contrast to other state media.
China retaliated in the trade war on Monday morning, hiking tariffs on $60 billion of U.S. imports, beginning June 1. The move comes after President Donald Trump last week raised U.S. tariffs on $200 billion to 25%, up from 10%.
The Buckingham Research Group cautioned investors on Boeing’s stock, saying in a note on Monday that the trade dispute continues to be one of the biggest risks facing the company.
“We remain Neutral and believe that ongoing trade risks and the need for some assurance that MAX issues are resolved causes BA to remain in the penalty box with more downside risk than upside potential,” Buckingham analyst Richard Safran said.
Boeing is one of the top U.S. companies with revenue from China, which Morgan Stanley said on Monday puts them in a position of “retaliatory tariff risk.”
Shares of Boeing, as of Friday’s close of $354.67, are up 10% for the year.
This is a developing story. Check back for updates.
