China Halts Boeing Jet Deliveries Amid Escalating US Trade War

China has directed its airlines to stop accepting Boeing aircraft deliveries after retaliatory tariffs were imposed on US goods, intensifying the ongoing trade war.

In a major blow to US aircraft manufacturer Boeing, China has ordered its domestic carriers to halt all pending and future deliveries from the company. The directive comes after Beijing imposed a 125% tariff on US imports over the weekend, responding to the US government’s 145% duty on Chinese products.

The move effectively blocks Boeing from accessing one of its most important markets and underscores the widening scope of the economic confrontation between the world’s two largest economies.

According to a Bloomberg report, Beijing has also stopped purchases of US aircraft machinery and equipment and is preparing to provide subsidies to airlines leasing Boeing jets to help offset rising operational costs caused by the tariffs.

China has long been one of Boeing’s biggest customers. In 2018, nearly 25% of Boeing’s global aircraft sales came from China. Industry projections suggest that 20% of global aircraft demand will come from China over the next two decades.

With the new tariffs, the cost of purchasing Boeing planes for Chinese airlines has nearly doubled, dealing a significant blow to the aircraft giant’s long-term outlook in Asia.

The latest escalation began when former US President Donald Trump announced a sweeping 145% tariff on Chinese imports, reigniting trade tensions. In response, China’s Ministry of Commerce urged the US to reverse its decision, warning of economic consequences and retaliatory steps.

While Trump later exempted some technology products — providing relief to companies like Apple — the broader conflict remains unresolved.

The escalating tariff battle places Boeing’s Asia-Pacific strategy in jeopardy. As trade negotiations stall, aviation analysts warn that the uncertainty could force Boeing to pivot toward other emerging markets, although few offer the scale of China.

So far, Boeing has not released an official statement on the development. Market watchers will closely monitor whether any diplomatic breakthrough can de-escalate the trade war and restore normal operations.