China Orders Halt on Boeing Jet Deliveries Amid Tariff War
Boeing Shares Plunge Amid Global Aerospace Industry Turmoil
China has ordered its airlines not to take any further deliveries of Boeing jets in response to the US decision to impose 145 per cent tariffs on Chinese goods, Bloomberg News reported. This move is part of a full-blown tariff war that is affecting the global aerospace industry, with planemakers, airlines, and suppliers reviewing contracts worth billions of US dollars.
China’s Top Airlines Affected
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. However, with the halt on deliveries, these airlines will now have to look for alternative solutions.
Beijing Asks Carriers to Halt Purchases of US-Made Parts
China has also asked its carriers to halt purchases of aircraft-related equipment and parts from US companies, according to Bloomberg News. This move is expected to raise maintenance costs for the jets flying in the country.
China’s Government Considers Assistance for Leased Boeing Jets
The Chinese government is also considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported. This could include providing financial support to help these airlines cope with the increased costs.
Boeing’s Struggles Continue
Boeing, which is already facing a slow recovery following a challenging year marked by a labor strike, enhanced regulatory scrutiny, and persistent supply chain disruptions, has not responded to a Reuters request for comment. The halt in deliveries to China marks yet another setback for the planemaker.
Escalating Tariff War
The escalating tariff war between the world’s two biggest economies risks bringing goods trade between the two countries to a standstill, according to analysts. The trade was valued at over US$650 billion in 2024.
FAQs
Q: What is the impact of China’s decision on Boeing?
A: China’s decision to halt deliveries of Boeing jets will have a significant impact on the planemaker, which is already facing a slow recovery.
Q: How will this affect China’s airlines?
A: China’s airlines will have to look for alternative solutions, such as leasing planes from other manufacturers or reducing their fleet sizes.
Q: What is the reason behind China’s decision?
A: China’s decision is a response to the US decision to impose 145 per cent tariffs on Chinese goods.
Q: How will this affect the global aerospace industry?
A: The global aerospace industry is already facing a full-blown tariff war, and this move will only add to the challenges faced by planemakers, airlines, and suppliers.
