Amid the ongoing trade conflict with the United States of America, China has told its airlines not to take any more deliveries of Boeing Co planes, Bloomberg reported. This move follows US President Donald Trump’s decision to impose tariffs of up to 145 per cent on Chinese goods.
Chinese carriers have also been asked to stop buying aircraft-related equipment and parts from US companies, sources were quoted as saying by the Bloomberg.
The order came after China announced retaliatory tariffs of 125 per cent on American goods over the weekend. These new tariffs would more than double the cost of US-made aircraft and parts, making it difficult for Chinese airlines to continue accepting Boeing planes.
China is also looking into ways to help airlines that lease Boeing jets and are now facing higher expenses due to the tariffs, the Bloomberg report said, quoting sources.
The trade conflict between the US and China has placed Boeing in a difficult position. The situation remains uncertain and could change. President Trump has reversed some tariffs in the past, including those on Apple Inc.’s iPhones imported from China.
The standoff marks another challenge for Boeing in one of the largest markets for aircraft sales.
China is expected to account for 20 per cent of global aircraft demand over the next 20 years. In 2018, almost 25 per cent of Boeing’s aircraft were delivered to China, the Bloomberg report said. However, Boeing has not announced any major new orders from China in recent years, mainly because of trade tensions and internal problems.
China was the first country to ground the 737 Max in 2019 after two fatal crashes. Trade disagreements during both the Trump and Biden administrations have also led China to shift more of its aircraft purchases to Airbus SE, a European manufacturer. In 2024, Boeing faced another issue when a door plug came off during a flight in January, raising further concerns about quality.
The situation also shows that China still depends on foreign companies to meet its growing need for passenger aircraft.
