China Halts Boeing Jet Deliveries Amid Rising Trade Tensions

Reports indicate that China has ordered its domestic airlines to halt the acceptance of Boeing jet deliveries, a decision that comes as tensions escalate between the United States and China in a protracted trade conflict. Along with this directive, Chinese airlines are also being advised to avoid purchasing parts and components from U.S. manufacturers.

The directive aligns with China's recent escalation of tariffs on American products, which have been increased to 125%. These tariffs mirror those imposed by former President Trump on Chinese imports and could even rise to 145% for certain goods, significantly hiking the costs associated with U.S.-made aircraft and their components, making them economically impractical for Chinese buyers.

Boeing is anticipating the shipment of approximately ten 737 Max airplanes to Chinese carriers such as China Southern Airlines, Air China, and Xiamen Airlines. In the first quarter, Boeing reported delivering 130 aircraft, including over 100 from the 737 range.

In response to the unfolding situation, Trump mentioned on Truth Social that China has backed out of a previously agreed-upon deal with Boeing, explicitly stating they would not take delivery of the contracted aircraft. Furthermore, it has been suggested that some of the documentation related to payment and delivery for certain aircraft may have been finalized prior to the recent intensification of trade hostilities, allowing for the possibility that some deliveries may still proceed into China.