China has reportedly ordered its airlines to halt all future deliveries of Boeing aircraft, in a dramatic response to the United States’ decision to impose steep tariffs on Chinese imports. According to Bloomberg News, the move comes shortly after Beijing raised its own retaliatory tariffs on US goods to 125%, following Washington’s announcement of 145% levies on Chinese products.
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The order affects not only aircraft deliveries but also the purchase of US-manufactured aircraft parts and related equipment. While the Chinese government has not officially confirmed the decision, multiple sources familiar with the situation say the guidance was issued to major Chinese airlines, including Air China, China Eastern Airlines, and China Southern Airlines.
These three carriers had been expected to receive a combined 179 Boeing jets between 2025 and 2027, a major portion of the planemaker’s global order book. This pause, if sustained, would be one of the most significant blows yet to Boeing’s long-standing relationship with one of its largest growth markets.
Trade War Hits Aerospace Industry
The new restrictions deepen the ongoing US-China trade war, dragging the global aerospace industry into its most contentious chapter yet. Contracts worth billions are now in question as airlines, suppliers, and manufacturers scramble to reassess their plans in light of the shifting political landscape.
The imposition of tariffs has sparked confusion, with some airline executives saying they would rather delay aircraft deliveries than absorb the additional duties. As of now, around 10 Boeing 737 MAX jets are reportedly ready for delivery to Chinese carriers, but sources suggest that only those with completed paperwork and payments ahead of the tariff hike may be allowed to enter China. Beijing is said to be exploring ways to support domestic airlines leasing Boeing aircraft, who now face much higher operating costs due to these geopolitical tensions.
Boeing Faces Growing Pressure
This development marks yet another setback for Boeing, which has already endured a turbulent year. The company is still reeling from a damaging incident in which a door panel blew off a 737 MAX 9 jet mid-flight last year, triggering regulatory investigations and production slowdowns.
Boeing shares fell 0.5% on Tuesday following the news, and the company’s overall market value has dropped more than 7% since the start of the year. Analysts suggest the short-term impact of China’s delivery halt may be limited — Boeing could reroute planes to other customers — but the longer-term consequences could be severe if the freeze persists.
Adding to Boeing’s woes, rival Airbus continues to hold a dominant position in the Chinese market. However, Airbus is not without its own problems; its CEO, Guillaume Faury, noted on Tuesday that production of its A350 and A220 jets is being hampered by delays in parts deliveries from the US-based supplier Spirit AeroSystems.
COMAC and the C919 Caught in the Crossfire
China’s own aviation ambitions could also suffer. Analysts warn that a ban on US-made aircraft components would significantly hamper China’s domestic jet program, particularly the C919. Ron Epstein, an aerospace analyst at Bank of America, said bluntly: “If China stops buying aircraft components from the US, the C919 program is halted or dead.” That risk highlights the deeply intertwined nature of the global aerospace industry, where few countries — including China — can fully insulate themselves from US technology and manufacturing.
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The fallout is being felt far beyond aviation. The chaotic rollout of Donald Trump’s tariff policy has triggered market volatility since early April. While US markets showed slight recovery this week, with the S&P 500 ticking up 0.7%, the index remains down about 7% for the year. Investors are also bracing for further disruption amid uncertainty over potential tariffs on critical sectors like pharmaceuticals and semiconductors. Meanwhile, global chip giant Nvidia has announced plans to build up to $500 billion worth of AI infrastructure in the US, likely a strategic hedge against rising tensions with China.