China Halts Boeing Jet Deliveries Amid Tariff War With U.S.
China has ordered its airlines to suspend all further deliveries of Boeing jets, according to a report by Bloomberg News, in retaliation against the U.S. decision to impose 145% tariffs on Chinese imports.
The move could significantly impact Boeing (BA.N), which counts China as one of its most important growth markets. Boeing shares fell 2% in early trading following the report.
U.S.-China Trade Tensions Hit Aerospace Sector
The directive reportedly affects Air China, China Eastern Airlines, and China Southern Airlines, which had collectively planned to receive over 175 Boeing planes between 2025 and 2027.
Beijing has also asked airlines to halt purchases of aircraft-related equipment and parts from U.S. suppliers, the report said, a shift that could raise maintenance costs for existing Boeing fleets in China.
The move comes as the aerospace industry finds itself caught in the crosshairs of an intensifying trade war. Earlier this month, Beijing responded to Trump’s tariffs by hiking levies on U.S. goods to 125%, making Boeing jets significantly more expensive for Chinese carriers.
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China May Support Carriers Facing Higher Costs
Bloomberg added that China is considering financial assistance for domestic carriers leasing Boeing jets that are now facing elevated costs due to the tariffs.
This isn’t the first time China has moved decisively against Boeing. It was the first country to ground the 737 MAX following fatal crashes in 2018 and 2019 and had already suspended most 737 MAX orders and deliveries by late 2019.
Boeing Faces a Mounting Set of Challenges
The latest blow deepens Boeing’s ongoing struggles, which include:
- A major labor strike in 2024,
- Increased regulatory scrutiny after a mid-air panel blowout on a MAX 9,
- Persistent supply chain issues.
Boeing’s shares have lost over a third of their value since the MAX 9 incident, and the company now faces the risk of further erosion in its critical Asia-Pacific market.
Meanwhile, European rival Airbus and China’s own COMAC may benefit from Boeing’s weakened position in the region.
Analysts warn the escalating tariff war could bring U.S.-China trade to a virtual standstill. In 2024, total goods trade between the two countries was valued at over $650 billion.
As tensions rise, aerospace is becoming a key battleground, and Boeing appears to be one of the first major casualties.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a "detective-like" mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
