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The Bombardier Global 7000 aircraft is reproduced in Toronto
Nathan Denette / The Canadian Press
Bombardier Inc. is expected to profit from Chinese retaliation against small American planes, but the prospects are mixed for the agricultural sector Canadian.
A 25 percent tariff on 15- to 45-tonne aircraft could prompt Chinese buyers to opt for Bombardier Global business aircraft on board aircraft manufactured by US-based producer Gulfstream, said Richard Aboulafia, from the Teal group. It is clear that Gulfstream is a high priority target … that helps a lot Bombardier, "he said in an interview
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The result could be that Bombardier wins a larger share of the Chinese market, accounting for about five percent of global business aircraft sales.
China says it imposed retaliatory tariffs after Washington imposed 25 percent tariffs on $ 34 billion of imports from China Friday,
Aboulafia calls China's action a "shotgun" for the US aerospace industry by targeting lower-volume aircraft.
An escalation has huge potential for damage if China targets Boeing and its popular 737 Max, would help Europe Airbus and its control of the C-series.
"These are not potentially small apples As far as airliners are concerned, it is huge. "
Aboulafia stated that the US tariffs against the Chinese aerospace sector made no sense since the United States enjoyed the same benefits. a 17: 1 advantage in aerospace trade. Bombardier declined to comment on the commercial skirmish between the two largest economies in the world.
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