China Stops US-made Boeing Deliveries as Tariff War Reaches New Heights: Report

New Delhi: In a sharp escalation of the ongoing US-China trade war, China has directed its airlines to halt all future deliveries of Boeing jets, Bloomberg News reported on Tuesday, citing sources familiar with the development.

The move comes in direct response to Washington’s decision to impose a steep 145% tariff on Chinese imports.

Beijing has also asked domestic carriers to suspend the purchase of aircraft-related equipment and parts from US manufacturers. The Chinese government is reportedly exploring financial support options for airlines leasing Boeing planes, aiming to offset rising operational costs triggered by the new tariffs.

According to Bloomberg, the cost of acquiring Boeing aircraft and spare parts could nearly double for Chinese operators under the current trade conditions.

This standoff marks a massive blow to Boeing, which has long considered China one of its most critical markets. The country is expected to account for 20% of global aircraft demand over the next two decades. In 2018, China made up almost a quarter of Boeing’s total deliveries. However, the American aerospace giant has struggled to secure major new orders from Chinese carriers in recent years due to deepening trade tensions and internal safety concerns.

China was the first country to ground Boeing’s 737 Max in 2019 after two fatal crashes, and confidence in the company further eroded in early 2024 when a door plug detached mid-flight, triggering another wave of safety scrutiny.

With relations deteriorating during both the Trump and Biden administrations, China has increasingly turned to Boeing’s European rival Airbus SE to meet its aviation needs.

Nonetheless, the latest development underscores Beijing’s ongoing dependency on foreign manufacturers to fulfill its soaring demand for passenger aircraft.

Meanwhile, the broader trade conflict continues to intensify. Since returning to office in January, US President Donald Trump has pushed forward with aggressive tariff measures, slapping up to 145% duties on Chinese goods. Beijing swiftly condemned the move as economic "bullying" and responded with retaliatory tariffs of up to 125% on American imports.

Amid mounting tensions, US trade officials announced a list of exemptions on Friday, sparing high-end tech products such as smartphones, semiconductors, and computers from the latest tariff wave—an attempt to shield domestic industries from collateral damage.

With both sides digging in, the escalating trade war now threatens to engulf key sectors ranging from aviation and tech to consumer goods, raising fears of prolonged disruption to global supply chains and business confidence.