Since the Trump administration has imposed 145% tariffs on Chinese goods, a trade war has been going on between the two countries. The Chinese government has now ordered Chinese airlines to no longer accept Boeing jet deliveries nor any deliveries concerning aircraft-related equipment from US companies.
Mid-2024, aerospace company Boeing made a promising estimation concerning China’s commercial aircraft fleet. According to their data, the fleet should more than double by 2043 and over 8,000 new planes were to be introduced in the country over the next 20 years. Even though Boeing was undoubtedly planning to produce and deliver at least a small part of those planes (Airbus being the main supplier of the Chinese fleet), a new decision taken by the Chinese government could well interfere with that goal.
America's new tariff's hurt developing countries which trade with the USA.
— Jason Smith – 上官杰文 (@ShangguanJiewen) April 8, 2025
The consequence will likely be that most of these nations increase trade with China and decrease trade with the USA.#tariffs pic.twitter.com/iam8VRcJWN
After a big part of imports from China to the US had been imposed a 145% tariff following Trump’s new trade regime, the Chinese government replied with their very own 125% tariffs on American products coming into China. That decision alone is expected to heavily affect any trades between the two countries but China has now gone one step further regarding the aircraft industry.
According to a report by Bloomberg, the Chinese government has asked all Chinese airlines to no longer accept any of the Boeing jets they may have ordered in the past. Moreover, the same goes for any aircraft-related equipment and parts from US companies.
USA vs China Tariff WAR !
— March (@MarchUnofficial) April 14, 2025
Is this true? pic.twitter.com/tAbNz0eH5p
Ten Boeing 737 Max jets are currently in the makes of joining multiple Chinese airlines including China Southern Airlines, Air China, and Xiamen Airlines according to Aviation Flights Group data. If their delivery paperwork and payment was completed before the tariffs came into effect, they may still be allowed to enter the country. In order to compensate the airlines that are currently leasing Boeing jets and might face higher costs, the government is also thinking about ways to provide assistance to those airlines.
Following the announcement, Boeing shares declined by 4.6% in premarket trading according to Boeing. Overall, the shares saw a 10 per cent drop since the beginning of 2025.
🇨🇳 China just hit pause on Boeing deliveries & parts from US companies after those hefty 145% US tariffs. Retaliatory 125% tariffs on US planes make it too pricey for Chinese airlines. Boeing’s stock already took a 4.6% dive. With China eyeing 20% of global plane demand, this… pic.twitter.com/whMLTyYner
— Fahad Naim (@Fahadnaimb) April 15, 2025
The news comes just days after an updated travel advisory from the Chinese government for those wanting to visit the United States. According to the updated advisory, relations between the two countries are suffering from the imposition of trade tariffs by the Trump administration.