Summary:
⚈ Trade deal slashed tariffs, easing pressure on Boeing’s international operations
⚈ BA shares are up 15.62% year-to-date, reaching a 14-month high
Despite accruing a dire reputation in 2024 and facing roadblocks in 2025, Boeing (NYSE: BA) stock has been on an uptrend since the markets opened on January 2.
On May 13, the positive performance was reinforced by the news that China is again accepting shipments from the American aeronautics giant.
BA shares have been hit by uncertainty emblematic of President Donald Trump’s trade war through much of April and early May, as the mutual tariffs have made most trade expensive to the point of futility.
The situation for Boeing was especially enigmatic, as deliveries to Chinese airlines were reportedly halted, India offered to take on the excess aircraft, and Beijing allegedly remained silent on the matter.
U.S.-China trade deal sends BA stock higher
The resumed acceptance of Boeing airplanes is the result of what appears to be breakthrough talks between a U.S. and Chinese high-level trade delegation held late last week in Switzerland. The negotiations effectively removed all reciprocal tariffs but left the 10% baseline and several other dues on the American side in place.
Overall, U.S. tariffs on goods from the People’s Republic plummeted from 145% to 30%, and Chinese duties dropped from 125% to 10%. Despite the success, some diplomatic posturing remains, and further negotiations are expected.
Boeing stock rallies to 14-month high
Although some uncertainty remains, Boeing stock reacted enthusiastically to the deal and to the continuation of the deliveries. Early on May 13, BA shares rallied 2.43% to their press time price of $204.86 – the highest in 14 months.
The latest surge led to Boeing stock being 10.84% up in the last week of trading, and 15.62% up year-to-date (YTD).
Featured image via Shutterstock