China has directed its airlines to stop taking delivery of Boeing jets in a retaliatory move amid the escalating trade war with the United States.
According to a Bloomberg report, the move follows recent US tariff hikes under President Donald Trump, who has imposed levies of up to 145% on Chinese imports.
In response, Beijing over the weekend rolled out retaliatory tariffs of 125% on American goods, a step that would more than double the cost of US-made aircraft and parts, making it economically unfeasible for Chinese airlines to continue accepting Boeing planes.
“Beijing has also requested that Chinese carriers halt any purchases of aircraft-related equipment and parts from US companies,” Bloomberg quoted sources familiar with the development.
The Chinese government is said to be exploring support measures for domestic airlines that lease Boeing jets and may now face increased operational costs.
The restrictions have put Boeing in a difficult position, as the fast-evolving dispute between the world’s two largest economies continues to disrupt major industries.
Trump on Tuesday weighed in to criticize Beijing with a post on his Truth Social network. China ‘just reneged on the big Boeing deal’ signed during his first administration, he said.”
Shares in Boeing dropped as much as 2.5% following the report, and were down 1.2% at 11:13 a.m. in New York. The stock had already fallen 10% since the start of the year.
Aircraft data shows that around ten Boeing 737 Max planes are currently awaiting entry into Chinese airline fleets, including two each for China Southern Airlines Co., Air China Ltd. and Xiamen Airlines Co.
Some of these jets are already in China at Boeing’s Zhoushan finishing centre, while others remain in the US near the company’s Seattle base.
