Beijing pauses Boeing orders as trade war escalates
China has reportedly ordered its airlines not to take any further deliveries of Boeing jets in response to United States President Donald Trump’s decision to impose 145 percent tariffs on Chinese goods.
Bloomberg News, citing people familiar with the matter, reported the development on Tuesday.The global aerospace industry is in the middle of a full-blown tariff war, with planemakers, airlines and suppliers reviewing contracts worth billions of dollars, after US supplier Howmet Aerospace ignited a debate over who should bear the cost of the tariffs.
China’s top three airlines – Air China, China Eastern Airlines and China Southern Airlines – had planned to take delivery of 45, 53 and 81 Boeing planes, respectively, between 2025 and 2027.
Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies like Boeing, the Bloomberg report said.Another blow for Boeing
Investors are taking note. The move could open more opportunities for France-based Airbus and Chinese domestic aerospace manufacturer the Commercial Aircraft Corporation of China (COMAC). Shares for Airbus, which is a publicly traded company, are up by almost a full percentage point on the news as of 12pm ET in the US (16:00 GMT), while Boeing shares are down more than a full percentage point.
In Washington, DC, Trump said on Tuesday that China has gone back on a major Boeing deal, after a news report that Beijing ordered airlines not to take further deliveries of the US aviation giant’s jets.The halt in deliveries to China marks yet another setback for the planemaker, which is navigating a slow recovery following a challenging year marked by a labour strike, enhanced regulatory scrutiny and persistent supply chain disruptions.
In 2024, the aerospace manufacturer took centre stage after a number of high-profile accidents involving its planes, including a door plug blowing off the side of a 737 MAX flown by Alaska Airlines minutes after takeoff from Portland, Oregon, the US on January 4.
