At a time when aviation sector is doing well on the back of falling fuel prices and rising demand from Asia, there is one concern that may play spoilsport for airlines. This concern is so big and uncertain that it has troubled countries across the globe.
Yes, you guessed it right! The big concern is indeed trade war.

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US president Donald Trump's trade war rhetoric, in all likelihood, will create major trouble for airlines even as they are enjoying a nascent recovery.  According to a report by AP, aircraft makers, at a recent event, said that the thousands of jobs are at risk in this most international of industries as Trump threatens to raise tariffs on a variety of goods and other countries prepare to retaliate. The remarks came at this week’s Farnborough International Airshow, a biannual extravaganza where billions of dollars of planes and parts are bought.

While Trump has said trade wars are “good and easy to win,” aviation experts believe American companies like Chicago-based Boeing will take the first hit because most of US aerospace production goes to foreign buyers, reported AP.  “Well over of 80 per cent of US commercial aerospace is exported,” said aviation analyst Richard Aboulafiah to AP, adding US aerospace is in the front line waiting to get shot first.

Aviation industry is global in truest sense in terms of production and demand. That said, any hit on account of trade war will impact most of the countries.  Meanwhile, in an interview to BBC, Dennis Muilenburg, Chief Executive, Boeing said, "aerospace thrives on free and open trade and we are concerned it could affect supply chain costs, but those supply chains are flowing in both directions [between China and the U.S.]. It is an intricate network around the world.”

The US has put tariffs on $34 billion of Chinese goods, with China responding with an equivalent sum. The Trump administration is planning tariffs on another $200 billion in goods. The US has also put tariffs on steel and aluminum from China, the EU and several other countries, which responded in kind.