China orders halt to Boeing jet deliveries as trade war with US intensifies

Representative picture/AI generated

Amid the continuing trade battle with the United States of America, China has instructed its airways not to take any extra deliveries of Boeing Co planes, Bloomberg reported. This transfer follows US President Donald Trump’s choice to impose tariffs of up to 145 per cent on Chinese items.
Chinese carriers have additionally been requested to cease shopping for aircraft-related tools and elements from US corporations, sources have been quoted as saying by the Bloomberg.
The order got here after China introduced retaliatory tariffs of 125 per cent on American items over the weekend. These new tariffs would greater than double the price of US-made plane and elements, making it tough for Chinese airways to proceed accepting Boeing planes.
China can be trying into methods to assist airways that lease Boeing jets and at the moment are going through larger bills due to the tariffs, the Bloomberg report mentioned, quoting sources.
The trade battle between the US and China has positioned Boeing in a tough place. The state of affairs stays unsure and will change. President Trump has reversed some tariffs prior to now, together with these on Apple Inc.’s iPhones imported from China.
The standoff marks one other problem for Boeing in one of many largest markets for plane gross sales.
China is predicted to account for 20 per cent of worldwide plane demand over the following 20 years. In 2018, virtually 25 per cent of Boeing’s plane have been delivered to China, the Bloomberg report mentioned. However, Boeing has not introduced any main new orders from China in recent times, primarily due to trade tensions and inner issues.
China was the primary nation to floor the 737 Max in 2019 after two deadly crashes. Trade disagreements throughout each the Trump and Biden administrations have additionally led China to shift extra of its plane purchases to Airbus SE, a European producer. In 2024, Boeing confronted one other difficulty when a door plug got here off throughout a flight in January, elevating additional issues about high quality.
The state of affairs additionally exhibits that China nonetheless is determined by international corporations to meet its rising want for passenger plane.