China sends back new Boeing jets as steep US tariffs take a toll
A second Boeing (BA.N), opens new tab jet intended for use by a Chinese airline was heading back to the US on Monday, flight tracking data showed, in what appears to be another victim of the tit-for-tat bilateral tariffs launched by President Donald Trump in his global trade offensive.The 737 MAX 8 landed in the US territory of Guam on Monday, after leaving Boeing's Zhoushan completion center near Shanghai, data from flight tracking website AirNav Radar showed.advertisementGuam is one of the stops such flights make on the 5,000-mile (8,000-km) journey across the Pacific between Boeing's US production hub in Seattle and the Zhoushan completion center, where planes are ferried by Boeing for final work and delivery to a Chinese carrier.
On Sunday a 737 MAX painted with the livery for China's Xiamen Airlines made the return journey from Zhoushan and landed at Seattle's Boeing Field.It is not clear which party made the decision for the two aircraft to return to the USBoeing could find a replacement buyer in Malaysia Airlines, however, which has said it was talking to the manufacturer about acquiring jets that may become available should Chinese airlines stop taking deliveries.Trump this month raised baseline tariffs on Chinese imports to 145%. In retaliation, China has imposed a 125% tariff on US goods. A Chinese airline taking delivery of a Boeing jet could be crippled by the tariffs, given that a new 737 MAX has a market value of around $55 million, according to IBA, an aviation consultancy.advertisementThe plane flew from Seattle to Zhoushan just under a month ago.Boeing did not immediately respond to a request for comment.The return of the 737 MAX jets, Boeing's best-selling model, is the latest sign of disruption to new aircraft deliveries from a breakdown in the aerospace industry's decades-old duty-free status.The tariff war and apparent U-turn over deliveries comes as Boeing has been recovering from an almost five-year import freeze on 737 MAX jets and a previous round of trade tensions.Confusion over changing tariffs could leave many aircraft deliveries in limbo, with some airline CEOs saying they would defer delivery of planes rather than pay duties, analysts say.Must Watch
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Time of India
26 minutes ago
- Time of India
EV launches may stall as China chokes magnet supply: Crisil sounds alarm for auto sector
New Delhi: India's auto industry could face disruptions in electric vehicle (EV) production if the current delays in rare earth magnet shipments from China persist, Crisil Ratings has said. According to the rating agency, nearly 30 import requests from Indian companies had been endorsed by the Indian government by the end of May 2025, but none have yet been approved by Chinese authorities, with no shipments arriving so far. Rare earth magnets, although accounting for less than 5 per cent of a vehicle's cost, are essential for permanent magnet synchronous motors (PMSMs) widely used in EVs and hybrids, as well as in components like electric power steering in internal combustion engine (ICE) vehicles. In April 2025, China imposed export restrictions on seven rare earth elements and finished magnets, requiring detailed end-use declarations and client confirmations, including that the materials would not be used for defence purposes or re-exported to the US. The revised rules have led to approval delays of at least 45 days, creating a backlog and tightening global supply chains. India sourced over 80 per cent of its ~540 tonne rare earth magnet imports from China in the last fiscal. Crisil Ratings flagged that a disruption lasting more than a month could impact EV launches and stall production schedules. 'The supply squeeze comes just as the auto sector is preparing for aggressive EV rollouts. Over a dozen new electric models are planned for launch, most built on PMSM platforms,' said Anuj Sethi, Senior Director, Crisil Ratings. According to Crisil, most automakers currently have 4-6 weeks of inventory. If the situation is not resolved, EV model launches could be deferred or rescheduled starting July 2025. While the immediate risk is to the EV segment, ICE passenger vehicles and two-wheelers could also be affected if the supply crunch extends. In FY26, domestic passenger vehicle volumes are expected to grow 2-4%, while electric PVs could rise 35-40 per cent on a low base. Electric two-wheelers may see ~27 per cent growth, compared with overall 2W growth of 8-10%. But sustained supply tightness may slow this momentum, particularly for EVs. 'Despite contributing less than 5 per cent of a vehicle's cost, these magnets are indispensable for EV motors and electric steering systems,' said Poonam Upadhyay, Director, Crisil Ratings. 'Automakers are actively engaging with alternative suppliers in Vietnam, Indonesia, Japan, Australia, and the US, while also optimising existing inventories.' The report added that during the pandemic, rare earth magnet supplies remained stable, unlike semiconductors, reinforcing reliance on just-in-time inventories. However, unlike semiconductors which have a diversified supply base, over 90 per cent of rare earth magnet processing is concentrated in China, with limited short-term alternatives. Crisil Ratings said that automakers and the government are addressing the risk through two approaches: building strategic inventories and sourcing from alternate suppliers in the short term; and reducing import dependence via exploration, domestic production, and recycling in the long term. The pace of China's export approvals remains the immediate monitorable, Crisil said, as the sector braces for possible disruption ahead of a key EV launch cycle.
Time of India
36 minutes ago
- Time of India
Most markets extend gains as China-US talks head into second day
AI generated image showing a rising stock market graph against blurred US and Chinese flags, symbolizing positive trade talk outcomes. Stocks mostly rose Tuesday as the latest round of China-US trade talks moved into a second day, with one of Donald Trump 's top advisers saying he expected "a big, strong handshake". There is optimism the negotiations -- which come after the US president spoke to Chinese counterpart Xi Jinping last week -- will bring some much-needed calm to markets and ease tensions between the economic superpowers. This week's meeting in London will look to smooth relations after Trump accused Beijing of violating an agreement made at a meeting of top officials last month in Geneva that ended with the two sides slashing tit-for-tat tariffs. The key issues on the agenda at the talks are expected to be exports of rare earth minerals used in a wide range of things including smartphones and electric vehicle batteries. "In Geneva, we had agreed to lower tariffs on them, and they had agreed to release the magnets and rare earths that we need throughout the economy," Trump's top economic adviser, Kevin Hassett, told CNBC on Monday. But even though Beijing was releasing some supplies, "it was going a lot slower than some companies believed was optimal", he added. Still, he said he expected "a big, strong handshake" at the end of the talks. "Our expectation is that after the handshake, any export controls from the US will be eased, and the rare earths will be released in volume," Hassett added. He also said the Trump administration might be willing to ease some recent curbs on tech exports. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 'It Runs While I Sleep' – The AI Side Hustle Sweeping Australia TApp Read Now Undo The president told reporters at the White House: "We are doing well with China. China's not easy. "I'm only getting good reports." After a strong start, Asian markets stuttered in the afternoon, though it was not immediately clear what had prompted the step back. Tokyo, Sydney, Seoul, Wellington, Taipei, Mumbai, Bangkok and Jakarta rose but Hong Kong and Shanghai pared their initial rallies as investors grew nervous ahead of the resumption of the talks. Singapore and Manila also slipped. London and Paris opened higher but Frankfurt was slightly lower. "The bulls will layer into risk on any rhetoric that publicly keeps the two sides at the table," said Pepperstone's Chris Weston. "And with the meeting spilling over to a second day, the idea of some sort of loose agreement is enough to underpin the grind higher in US equity and risk exposures more broadly." Investors are also awaiting key US inflation data this week, which could impact the Federal Reserve's monetary policy amid warnings Trump's tariffs will refuel inflation strengthening the argument to keep interest rates on hold. However, it also faces pressure from the president to cut rates, with bank officials due to make a decision at their meeting next week. While recent jobs data has eased concerns about the US economy, analysts remain cautious. "Tariffs are likely to remain a feature of US trade policy under President Trump," said Matthias Scheiber and John Hockers at Allspring Global Investments. "A strong US consumer base was helping buoy the global economy and avoid a global recession." However, they also warned: "The current global trade war coupled with big spending cuts by the US government and possibly higher US inflation could derail US consumer spending to the point that the global economy contracts for multiple quarters." - Key figures at around 0715 GMT - Tokyo - Nikkei 225: UP 0.3 percent at 38,211.51 (close) Hong Kong - Hang Seng Index: DOWN 0.2 percent at 24,142.25 Shanghai - Composite: DOWN 0.4 percent at 3,384.82 (close) London - FTSE 100: UP 0.3 percent at 8,858.21 Euro/dollar: DOWN at $1.1397 from $1.1420 on Monday Pound/dollar: DOWN at $1.3497 from $1.3552 Dollar/yen: DOWN at 144.58 yen 144.60 yen Euro/pound: UP 84.43 from 84.27 pence West Texas Intermediate: UP 0.2 percent at $65.41 per barrel Brent North Sea Crude: UP 0.2 percent at $67.20 per barrel New York - Dow: FLAT at 42,761.76 (close)
Economic Times
41 minutes ago
- Economic Times
Markets in wait-and-watch mode amid global crosswinds: Punita Kumar Sinha
Markets are stable due to the RBI cut and benign macro conditions. Global events like US-China trade talks and internal US economic softening are key factors. India faces mixed economic data, with positives like rate cuts and good monsoons balanced by concerns about valuations and geopolitics. Market momentum exists, but choppiness is expected. Valuations are neutral to high. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads "People are taking a relook at markets given the RBI cut. So, for the moment things seem to be fairly stable and macro conditions are benign. But one never knows given the global situation what could come next," says Punita Kumar Sinha , Pacific Paradigm first of all, India stands in a good place because we have the least amount of risk compared to some of the other countries amongst the large economies, especially being on President Trump's radar for tariffs and some other issues, immigration, I mean, the data is mixed. There are positives and then there are negatives. So, the positives, we are beginning to see for India is that obviously rate cuts and plenty of liquidity has been injected by the RBI, the monsoons are good which will help the rural economy, the trade talks are sort of not looking that harsh for India at the moment or at least it is not on the radar as much as some other countries, and the geopolitical situation seems to have calmed down, so that is on the positive the negative side, economic data is still mixed. The economy still needs to show sign of further strengthening. The RBI rate cuts now mean that potentially since the stance is now neutral, that there may not be any further cuts or further liquidity injections for the remainder of the year and then, another negative is that geopolitics could become an issue again and the trade discussions could again come into the forefront for India as well. And the other negative is that valuations are now, after the markets have rallied the valuations are not that great once it is kind of a balance between the positives and negatives. And given that, the markets could be choppy, rangebound, but we could have some good months and maybe not so good months depending on data and news flow. So, I think the momentum is there right now. People are taking a relook at markets given the RBI cut. So, for the moment things seem to be fairly stable and macro conditions are benign. But one never knows given the global situation what could come it is in no one's interest to have an adverse outcome. So, I am hopeful that there will be some negotiation that will be positive for both, otherwise the outcome could be negative and the markets are not pricing in a big negative outcome. The markets are pricing in a neutral to positive outcome, which is why the markets are being strong across the board, whether it is US, whether it is Chinese markets, Asian markets, emerging markets . So, I think that is the risk as well that the markets are not pricing in a bad I mean I think they are still on the high side because the markets have rallied but, of course, India has underperformed some of the other emerging markets, particularly Latin America and some of the other Asian countries and also India has underperformed Europe. So, relative valuations compared to some of these other markets has improved. But if you look at versus its own history, Indian market valuations are not cheap and we are still trading over 20 times multiples and while growth would start picking up particularly on the rural side with the rate cuts and a better monsoon, so there could be some better numbers coming on the denominator, but I still do not think that the valuations are that attractive relative to its own history, they are not cheap, I mean they are neutral to high.
