China orders suspension of Boeing deliveries — report

China has ordered its airlines not to take any further deliveries of Boeing jets in response to the US decision to impose 145% tariffs on Chinese goods, Bloomberg News reported on Tuesday, citing people familiar with the matter.

Shares of Boeing — which sees China as one of its biggest growth markets and where rival Airbus holds a dominant position — were down 3% in premarket trading.

Beijing has also asked that Chinese carriers halt purchases of aircraft-related equipment and parts from US companies, Bloomberg reported.

China’s move to halt purchases of aircraft-related components is expected to raise maintenance costs for the jets flying in the country.

The US and China have been embroiled in a tariff war triggered by US President Donald Trump's trade policies. China last week increased levies on US imports to 125% in retaliation against US tariffs.

The Chinese government is considering ways to provide assistance to airlines that lease Boeing jets and are facing higher costs, Bloomberg News reported.

Boeing did not immediately respond to a request for comment.

A 125% duty would significantly raise the cost of Boeing jets bound for Chinese carriers, making them a financial burden and potentially prompting airlines to consider alternatives such Airbus and domestic firm Comac.

China’s three biggest airlines — Air China, China Eastern Airlines and China Southern Airlines — were planning to take delivery of 45, 53 and 81 Boeing aircraft, respectively, between 2025-2027.

The escalating tit-for-tat tariffs between the world’s two biggest economies risk bringing goods trade between them to a standstill, according to analysts. That trade was valued at more than $650bn in 2024.

Trump, who said on Friday that he was comfortable with the tariffs on China, also suggested a deal with Beijing could be on the horizon.

Reuters