Boeing (BA) rival Airbus (EADSF) says it is gearing up for a more antagonistic trade relationship with the U.S., ahead of Donald Trump’s inauguration later this month.
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The CEO of the European aerospace giant, Guillaume Faury, warned of “very strong” protectionism under the incoming administration. Speaking to Reuters as head of France’s GIFAS aerospace industry association, he said the details of US trade policy under the incoming president were still murky, but would undoubtedly be protectionist.
The comments came as EADSF is expected to announce it made 766 deliveries last year, a 4% increase from 2023. That came as BA saw its deliveries fall by a third over the year as it contended with strikes and serious quality concerns.
Faury, who recently criticized “unmanageable” European Union (EU) regulations, said the sector was enjoying strong demand in aerospace and defense.
BA vs EADSF Rivalry Remains
The airlines business is seen as a proxy for the broader topic of U.S. trade policy. BA is the largest exporter in the U.S., and its rivalry with EADSF has been at the center of U.S.-European trade tussles for years, now complicated by a third player – China.
During the last Trump presidency, an almost two-decade-long dispute via the World Trade Organization resulted in a trade war and escalating tariffs on everything from aircraft parts to cheese.
But by 2021, U.S. and EU trade authorities agreed to suspend their feud for five years as they looked over their shoulders at emerging competition from China, in the shape of the heavily subsidized Comac C919.
The Financial Times reported on January 1st that Comac hopes for European certification this year and could be flying in Southeast Asia by next year.
The question now is whether an incoming Trump administration will reignite the old feud or push for further détente in the face of Chinese competition.
Is BA a Good Stock to Buy Today?
Overall, Wall Street has a Moderate Buy consensus rating on BA stock, based on 15 Buys, six Holds and one Sell. The average BA price target of $195.26 implies over 13% upside potential to current levels. Shares of BA have decreased by almost 24% over the past year.
