China orders airlines to suspend Boeing jet deliveries amid trade war, Bloomberg reports
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China’s move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country.
PHOTO: AFP
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WASHINGTON – China has ordered its airlines not to take any further deliveries of Boeing jets in response to US President Donald Trump’s decision to impose 145 per cent tariffs
Shares of Boeing, which looks at China as one of its biggest growth markets and where rival Airbus holds a dominant position, were down 2 per cent in early trading.
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 American companies, the Bloomberg report said.
China’s move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country.
The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.
It was China that first grounded Boeing’s 737 MAX jets after two fatal crashes in 2018 and 2019 killed nearly 350 people. China also suspended most orders and deliveries of the jet in 2019.
Boeing did not immediately respond to a Reuters request for comment.
The halt in deliveries to China marks yet another setback for the planemaker
Beijing’s action also follows its decision last week to hike levies on US imports to 125 per cent in retaliation against US tariffs, which would significantly raise the cost of Boeing jets bound for Chinese carriers and potentially lead airlines to consider alternatives such as Airbus and domestic player Comac.
Boeing’s shares have shed more than a third of their value since a mid-air door panel blowout
The escalating tit-for-tat tariffs between the world’s two biggest economies risk bringing goods trade between the two countries to a standstill, according to analysts. That trade was valued at over US$650 billion (S$856 billion) in 2024. REUTERS
