Here’s a breakdown of the sectors and companies likely to be most affected:Aviation
Boeing stands to be one of the biggest casualties of the new tariffs, which will make its aircraft significantly more expensive compared to competitors Airbus and China’s state-owned COMAC.
While Boeing avoided tariffs during the first U.S.-China trade war under Trump, the company still suffered a sharp decline in sales and deliveries to China after two fatal MAX 8 crashes and rising geopolitical tensions between Washington and Beijing.
Although China lifted its import freeze on Boeing in January 2024, full-scale deliveries only resumed six months later. Now, the country’s top three carriers — Air China, China Eastern Airlines, and China Southern Airlines — had planned to receive 45, 53, and 81 Boeing aircraft respectively between 2025 and 2027. Those orders may now be jeopardized by the steep price hike.
Semiconductors
China imports roughly $10 billion worth of semiconductors from the U.S. annually, with Intel’s CPUs accounting for about $8 billion of that figure, according to analysts at Bernstein. These chips are widely used in laptops and servers, and in 2024, China became Intel’s largest market, contributing 29% of its total revenue.
Micron, another major U.S. chipmaker, could also be affected, though its impact may be limited as it operates manufacturing facilities in China and other regions.
Notably, Nvidia’s AI chips — highly sought after by Chinese tech firms — are not subject to the new tariffs. These chips are produced and assembled in Taiwan by contract manufacturer TSMC, placing them outside the scope of the retaliatory duties.
Farm equipment
The U.S. farm equipment sector faces additional pressure as China’s new 34% tariff comes on top of an earlier 10% levy imposed in March. The combined duties are likely to impact leading American manufacturers such as Caterpillar, Deere & Co, and AGCO.
Agriculture
The U.S. agricultural sector could suffer the most under the new tariffs. China is the largest overseas market for American agricultural exports, and the steep tariffs threaten to significantly reduce demand.
On top of the new duties, China on Friday also suspended import qualifications for U.S.-based C&D (USA) Inc. over food safety concerns related to sorghum. Imports were also suspended for poultry meat and bone meal from American Proteins, Mountaire Farms of Delaware, and Darling Ingredients.
Additionally, poultry product imports from Mountaire Farms of Delaware and Coastal Processing have been halted.
