According to Bloomberg News, Chinese airlines have been instructed to cease further acquisitions of Boeing aircraft in response to a 145% tariff imposed by the U.S. on Chinese goods. In pre-market trading, Boeing’s stock price dropped by 3.72%.
Boeing, a major American exporter, serves customers across more than 150 countries. Year-to-date, the aerospace giant has delivered 18 aircraft to nine Chinese airlines. Air China, China Eastern Airlines, and China Southern Airlines have scheduled deliveries of 45, 53, and 81 Boeing planes, respectively, between 2025-2027, according to Reuters.
Boeing views China as a growth opportunity where Airbus is a predominant competitor. However, the Chinese government has also requested that airlines avoid purchasing aircraft-related equipment and parts from U.S. firms, as reported by Bloomberg News, a move that may increase maintenance costs for aircraft operating in China. The government is considering support measures for airlines leasing Boeing jets to mitigate these costs.
The U.S. and China have been engaged in a tariff conflict precipitated by former President Donald Trump’s trade strategies. Trump recently expressed contentment with the tariffs on China and hinted at a potential trade agreement with Beijing, although no agreement has been reached yet. In retaliation, China has raised tariffs on U.S. imports to 125%.
A 125% duty on Boeing jets could substantially increase costs for Chinese carriers, potentially leading them to consider alternatives such as Airbus or China’s domestic COMAC. Boeing has not yet responded to requests for comments.