Overview
- China has instructed its airlines to halt further deliveries of Boeing aircraft and suspend purchases of US-made aviation parts, citing retaliatory measures against US tariffs.
- The move follows the US imposing tariffs of up to 145% on Chinese goods, with China responding with 125% tariffs on US imports, including aircraft and components.
- Boeing shares fell as much as 4.6% in premarket trading, reflecting investor concerns over the financial impact of losing access to the Chinese aviation market.
- Chinese airlines may turn to alternative suppliers like Airbus and domestic manufacturer COMAC as the cost of US-made planes rises significantly due to tariffs.
- US President Donald Trump criticized China’s actions, accusing Beijing of reneging on a major Boeing deal and escalating trade tensions further.