China proposes additional 25% tax on US-built large cabin aircraft

Deer Jet's Gulfstream G550 B-8136 (Photo: Alud Davies)

China has stepped up its trade war with the US by proposing to introduce an additional 25% tariff on imports of US-built aircraft weighing between 15,000kg and 45,000kg.

If they come into effect the new measures will mostly affect aircraft from the Boeing 737 family but will also apply to all members of the Gulfstream family, aside from the G280.

China is looking to impose the new rates in response to the US introducing a similar tariff. If the new rates come into effect the total import duty that Chinese owners would have to pay will be 30%.

The large-cabin Gulfstream family are the most popular types currently operating in China.

According to the AMSTAT database, there are currently 100 large-cabin Gulfstreams in operation on the Chinese mainland, with an additional 71 operating in Hong Kong.

Not all aircraft are on the local Chinese B-register, with an increasing number appearing on offshore registries in places including Aruba, Bermuda and the Cayman Islands.

If the new rates do come into place the winners are likely to be the offshore registries, as well as Airbus.
The Boeing 737 family’s main competitors, the A320 family, are built by European air-framer Airbus.