Trump Praises Boeing, Suggests More Plane Purchases Coming -- Update
February 17 2017 - 4:12PM
Dow Jones News
By Doug Cameron and Damian Paletta
President Donald Trump on Friday heaped praise on Boeing Co. and
suggested the U.S. government could increase its business with the
aerospace company as he delivered an economic-themed speech that
had many campaign trail overtones.
Mr. Trump, speaking at Boeing's North Charleston, S.C. facility,
gestured to a large 787-10 Dreamliner behind him and said "That is
one beautiful airplane. Congratulations to the men and women here
who have built it. What an amazing piece of art. What an amazing
piece of work."
The 15-minute remarks he delivered in South Carolina reinforced
many of the themes he has made for months, both as a presidential
candidate and since he was sworn in.
He said he would cut taxes for almost all taxpayers, cut
regulations for businesses, and find ways to financially punish
companies that move jobs overseas and then try to sell their
products back into the U.S.
"This is our mantra. Buy American and hire American," he
said.
Large parts of the new 787 -- which is due to fly for the first
time in the coming weeks -- are built outside the U.S. and
assembled in North Charleston and Boeing's main manufacturing
facilities near Seattle. Boeing created a global supply chain to
spread the financial risk of the 787 program among multiple
partners.
While Boeing has a record backlog of almost 6,000 jetliners, it
has also been cutting jobs to improve its competitiveness with
European rival Airbus SE.
Boeing's relations with Mr. Trump have warmed markedly in recent
weeks following his initial blast on Twitter in December against
the cost of the new jets it will build to serve as Air Force One,
threatening to even cancel the plan.
Boeing Chief Executive Dennis Muilenburg has met a number of
times with Mr. Trump since then and committed to keep down the cost
of replacing the presidential fleet of 747 jumbos. On Friday, Mr.
Trump said they were "getting closer and closer" to a deal on the
Air Force One successor.
Boeing was also asked to price out its F/A-18 combat jets as a
potential substitute for some of the F-35 aircraft being built by
Lockheed Martin Corp. for the U.S. Navy. Mr. Trump said Friday the
government is looking at "a big order" of additional F/A-18s. The
Pentagon last month launched a review comparing the Boeing plane
with the F-35.
The president also offered backing for Lockheed's F-35, however.
"It was out of control and now it's very much in control," he told
reporters.
Boeing's shares hit an all-time high on Friday, while Lockheed
was narrowly lower in tandem with most aerospace stocks.
Mr. Trump, who was invited by Boeing to the event, said U.S.
companies and workers faced unfair trade imbalances. He didn't
mention which countries were responsible for these trade
imbalances, but he did reference how he wanted to strengthen
security along the U.S. border with Mexico.
"When there is a level playing field, and I've been saying this
for a long time, American workers will always, always, always win,"
he said.
Mr. Trump can enact some of his economic and trade agenda
through executive powers, but much of it would rely on
congressional assistance. The changes to tax law he wants, for
example, would likely require a sweeping overhaul of the tax code.
He has said he would like to advance this effort during the summer,
but lawmakers appear unclear on how the White House wants to
proceed. He didn't offer any new timetables during his speech.
The president ended his speech with unusual praise for Boeing:
"May God bless the United States of America and God bless
Boeing."
Write to Doug Cameron at doug.cameron@wsj.com and Damian Paletta
at damian.paletta@wsj.com
(END) Dow Jones Newswires
February 17, 2017 15:57 ET (20:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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