Overview

• President Trump expressed optimism about a trade agreement with China, projecting a resolution within three to four weeks.
• The aviation industry is experiencing booking slowdowns, with fears growing over potential extension of tariffs to aircraft despite WTO exemptions.
• Volkswagen is negotiating with the U.S. government and considering local production of Audi vehicles to offset the 25% auto import tariff.
• China has reportedly instructed airlines to avoid purchasing Boeing aircraft and sourcing parts from U.S. firms, potentially boosting domestic alternatives like the Comac C919.
• The current U.S. tariff regime includes a 10% base levy and 25% duties on cars, parts, steel, and aluminum, exacerbating supply chain vulnerabilities across critical industries.