Boeing (BA) ETFs tumbled in big U.S. manufacturers on Wednesday, bearing the brunt of an intensifying trade war between China and the United States.
Boeing shares fell more than 4% in Wednesday after China announced a 25% tariff on airplanes in response to proposed tariffs by President Donald Trump’s administration on $50 billion worth of imports, including medicines, chemicals and consumer electronics.
Beijing’s covers 106 U.S. imports including soybeans, cars, and chemicals.
According to The Street, “China is Boeing’s biggest export market and the 737 is its biggest selling product. The country is expected to surpass the U.S. as the world’s biggest buyer of aircrafts by as early as 2022.”
Trade War Fears Surface in the Market
The Dow Jones Industrial Average was down 399.81 points, or 1.66 percent, at 23,633.55. The S&P 500 (.SPX) fell 28.57 points, or 1.1 percent, at 2,585.88 and the Nasdaq Composite was down 75.51 points, or 1.09 percent, at 6,865.77 as of Wednesday morning.
According to Yahoo Finance, “The S&P opened and stayed below its 200-day moving average, while the Dow held just above that mark. The Nasdaq dipped into negative territory for the year. The declines were broad based. All 30 Dow components were lower. About 469 of the S&P 500 (.SPX) components were lower. The industrials index’s (.SPLRCI) 1.8 percent slide was the most among the 11 major S&P sectors.”