China Halts Boeing Deliveries Amid Escalating Trade War with the US
In a significant move amid rising trade tensions, the Chinese government has instructed domestic airlines to suspend accepting deliveries of Boeing aircraft. This development comes as both China and the US have intensified their trade hostilities, marking a new phase in the ongoing economic conflict between the two nations.
Government Orders and Trade Implications
According to a Bloomberg News report, the directive not only prohibits the acceptance of Boeing jets but also halts the procurement of aviation parts and components from U.S. suppliers.
This shift follows China’s recent escalation of retaliatory tariffs on U.S. goods, which have reached as high as 125%. This increase aligns with the tariffs imposed by the Trump administration on Chinese imports, effectively doubling the cost of U.S.-manufactured aircraft and parts for Chinese buyers.
Boeing’s Response and Market Reactions
Boeing has refrained from commenting on this issue publicly. However, it is worth noting that the company saw a decline in its share price, which fell by $2.59 or 1.6%, bringing it to $156.74 during early trading hours.
Despite the halt in new deliveries, Boeing was scheduled to supply approximately 10 of its 737 Max aircraft to several Chinese carriers, including major airlines such as China Southern Airlines, Air China, and Xiamen Airlines. In total, Boeing delivered 130 aircraft globally in the first quarter of this year, which included over 100 of the 737 models, as reported on April 8.
Reactions from U.S. Officials
President Trump addressed these developments in a post on Truth Social, stating that China has reneged on its commitment to purchase Boeing aircraft, claiming they would “not take possession” of the jets they had previously ordered.
Future Deliveries and Economic Impact
Bloomberg suggested that some of the deliveries might still proceed, as certain payment and delivery documents for the aircraft could have been finalized before the escalation of tariffs. Nonetheless, with the current trade climate, future transactions appear increasingly uncertain.
